WASHINGTON (AP) -- U.S. banks earned more from April through June than during any quarter on record, aided by a steep drop in losses from bad loans.
The Federal Deposit Insurance Corp. says the banking industry earned $42.2 billion in the second quarter, up 23% from the second quarter of 2012.
Banks' losses on loans tumbled 30.7% from a year earlier to $14.2 billion, the lowest in six years. And bank lending increased 1% from the first quarter. Greater lending helps boost consumer and business spending, leading to more jobs and faster economic growth.
Still, the report shows that the largest banks continue to drive the industry's profits while smaller institutions have struggled.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Twitter Stock Upgraded: What You Need to Know
2018 could be the year Twitter turns profitable -- and Wall Street is getting excited.
Why RH Stock Rocketed 181% Higher Last Year
The upscale home furnishings retailer soared as management's strategy shift started to pay off.
This 11% Yielder Just Became a Bit Less Risky
Energy Transfer Partners LP is about to get a big cash windfall to pay down debt.