US Banking Sector Update

According to the Federal Deposit Insurance Corporation (FDIC), the aggregate net income of the banks for the quarter ending on 31st Dec 2018 amounted to US$59.1 billion, an increase of US$33.8 billion or 133.4% from the same quarter in 2017. More than 70% of the 5,406 insured institutions that posted the financial results reported year-on-year growth in quarterly earnings. After adjustments for tax reform (to reflect the average effective tax rate before the 2017 tax law) the net income would have been $50.3 billion in 4Q 2018.