WASHINGTON Feb 28 Net income at U.S. banks
increased by $3.1 billion, or 7.7 percent, in the fourth quarter
of 2016 compared with a year ago, while the number of struggling
lenders fell, the Federal Deposit Insurance Corp said on
For the year, the banking industry reported a 4.9 percent
rise in net income to $171.3 billion, according to the quarterly
report from the bank regulator.
The FDIC noted the share of unprofitable banks in 2016, 4.2
percent, was the lowest since 1995.
The FDIC shields bank customers if a lender fails, and the
agency chief said he saw bright spots for the industry, even as
he urged caution.
"Loan balances grew, asset quality improved and the number
of unprofitable banks and 'problem banks' continued to fall,"
FDIC Chairman Martin Gruenberg said in a statement.
"Nevertheless, the operating environment for banks remains
Gruenberg warned that banks must brace for rising interest
(Reporting by Patrick Rucker; Editing by Jeffrey Benkoe)