yesterday issued the latest Quarterly Banking Profile (“QBP”) for
the first quarter of 2023.
The headline results of the QBP were:
- Net Income ($79.8 billion) Increased from the Prior Quarter,
Led By Higher Noninterest Income - The Net Interest Margin Declined Quarter Over Quarter to 3.31
Percent - Unrealized Losses on Securities Declined for a Second
Consecutive Quarter - Loan Balances Declined Modestly from Last Quarter, But Grew
from a Year Ago - Total Deposits Declined for a Fourth Consecutive Quarter
- Asset Quality Metrics Remained Favorable Despite Modest
Deterioration - Community Banks Reported Lower Net Income from the Prior
Quarter - The Reserve Ratio for the Deposit Insurance Fund Declined to
1.11%
FDIC Chairman Martin Gruenberg, commenting on the QBP, said:
“[t]he banking industry has proven to be quite resilient
during this period of stress. Net income still remains high in
relation to historical measures, asset quality metrics remain
favorable, and the industry remains well capitalized. However, the
industry continues to face significant downside risks from the
effects of inflation, rising market interest rates, slowing
economic growth, and geopolitical uncertainty.”
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