WASHINGTON – U.S. banks' earnings in the July-September period jumped nearly 13 percent from a year earlier as continued growth in lending fueled interest income.
The data issued Tuesday by the Federal Deposit Insurance Corp. showed continued strength in the banking industry more than eight years after the financial crisis struck. However, the impact of low oil prices on energy companies led banks to continue to post bigger losses on commercial and industrial loans. Some energy companies have struggled to repay loans, causing distress for banks in oil and gas producing regions.
The FDIC reported that U.S. banks earned $45.6 billion in the third quarter, up from $40.4 billion a year earlier.