For Banks, 2010 Was A "Turnaround Year"

by Derek Loosvelt | February 23, 2011

So says Sheila Blair, chair of the FDIC, which recently completed a study of the nation's banks and found that "the banking industry swung to an $87.5 billion profit in 2010 from a net loss of $10.6 billion a year earlier."

The FDIC also found that "for the first time in six years, the number of institutions reporting an annual loss decreased," and that although there are still hundreds of so-called "problem banks" (banks on the verge of closing), the number of closures will likely decline this year.

Further data from the study showed that "the nation's 7,657 banks reported $21.7 billion in profit in the fourth quarter," versus "the $1.8 billion net loss the industry reported in the fourth quarter of 2009. It is the sixth consecutive quarter that earnings have registered a year over year increase, with nearly two in three banks posting better results."

All this is good news for current banking executives. And if banks can keep the momentum going, it should also point to a healthy job market for future banking executives for the next couple of quarters.

(Dealbook)

Filed Under: Finance


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