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ABA: The American Bankers Association
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ABA Statement on FDIC's Second Quarter Bank Earnings Report

“The FDIC's latest Quarterly Banking Profile demonstrates the resiliency of America's banks as they continue to help their customers and communities weather the worst economic downtown since the Great Depression. The data show that banks remain a source of strength for the economy during the global pandemic, as the industry not only increased lending in the second quarter but also hiring. The FDIC report also highlights that banks continue to maintain strong capital and liquidity levels despite the economic headwinds.

“While lending in the second quarter of 2020 was up due to strong bank participation in the SBA's Paycheck Protection Program in support of small businesses, net interest income fell. As expected, loan quality in the quarter deteriorated due to the economic downtown. Banks continue to shore up provisions to prepare for tougher times ahead in anticipation of additional losses stemming from the pandemic. The record surge in deposits in the first half of the year reflects the continued trust consumers and businesses have in their banks during these uncertain times.

“Looking ahead, banks remain a steadying force to support their customers and communities. America’s banks are highly capitalized, hold ample loss reserves, and have instituted strong risk management measures to ensure they can provide the credit needed to help the economy recover amid the evolving public health crisis.”

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About the American Bankers Association

The American Bankers Association is the voice of the nation’s $22.5 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $18 trillion in deposits and extend nearly $11 trillion in loans.

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