Bank profits slump 70% as virus rakes businesses, households The FDIC says the U.S. banking industry’s second quarter profits fell by 70% from a year agoNEW YORK -- The U.S. banking industry’s second-quarter profits fell by 70% from a year ago as low interest rates and the economic turmoil of the COVID-19 pandemic weighed heavily on big and small banks alike. The Federal Deposit Insurance Corp. said Tuesday that total bank profits across 5,066 insured institutions were $18.8 billion, compared with profits of $62.5 billion in the same period a year ago. That program came in the form of bank loans, and each bank took a small fee for each application they processed. Despite tumbling profits, the FDIC said it did not see any systemic issues in the industry. Banks have taken in record deposits in the quarter — a sign of consumer confidence in the bank industry — and the FDIC’s “troubled bank list” remains unchanged from last quarter.

Source: ABC News August 25, 2020 16:28 UTC