US banking industry makes £26bn in first quarter of 2013

City A.M. Reporter
The US banking industry reported earnings of $40.3bn (£26.5bn) during the first quarter of 2013, in part due to one-time changes in income and expenses at big banks, according to data released yesterday by the Federal Deposit Insurance Corporation.

Bank earnings during the quarter were up 15.8 per cent from the same period in 2012 and represented an all-time quarterly high, the FDIC said, though the previous high mark was when the industry was smaller in terms of total assets.

A reduction in expenses for legal costs and proceeds from a settlement boosted earnings during the quarter.

Banks also reduced to a six-year low the amount they set aside in case of losses on loans, the FDIC said.