Banking Industry Hits Record Profits

The banking industry, on a four-year winning streak, set another record for profits in the third quarter.

Banks rolled up $13.8 billion in earnings in the three months ended Sept. 30, obliterating the previous record of $12 billion set three months earlier. Profits have exceeded $10 billion in each of the past 11 quarters.

“The picture for the industry remains positive going forward,” Chairman Ricki Helfer of the Federal Deposit Insurance Corp. said Wednesday.

She said strong loan growth, reduced premiums for insuring deposits and stable net interest margins contributed to the record profits. The FDIC last month cut deposit insurance premiums to near zero for most banks, a savings of nearly $1 billion for the industry.