Commercial Banks Report Record Profits

Profits at the nation’s commercial banks rose 13.1 percent to a record $59.2 billion last year, boosted by strong growth in loans and other interest-earning activities, the government reported Thursday.

The strong economy continued to boost the banking industry, with earnings in the fourth quarter jumping 11.5 percent to a record $15.3 billion, up 11.5 percent from the October-December period of 1996, the Federal Deposit Insurance Corp. said.

FDIC Chairman Andrew Hove said the results were “like the Guinness Book of World Records.”

The percent of commercial bank loans that were more than 90 days overdue fell last year to 0.96 percent of loans - the lowest level in the 16 years that data have been reported.

Overdue credit-card loans, however, rose 2.14 percent in 1997 from 1.91 percent in 1996.

Only one commercial bank - Southwest Bank of Jennings, La. - failed last year, the lowest total since 1962.