FDIC: Key indicators of the US banking industry improve in the first quarter, but book losses slightly increase.

The Federal Deposit Insurance Corporation (FDIC) reported that despite facing the Middle East war and rising interest rates, key indicators in the US banking industry improved in the first quarter, although industry net losses increased slightly. According to the quarterly assessment by the FDIC of 4,278 insured banks across the US, net profits in the banking industry increased by 3.6% in the first quarter, reaching $80.5 billion. The total balance of loans and leases grew by 1.6% compared to the previous quarter and by 7.1% compared to the same period last year, marking the fastest annual growth rate since the second quarter of 2023. The FDIC stated that the growth in quarterly profits was mainly driven by an increase in non-interest income at large banks.