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The U.S. Federal Deposit Insurance Corporation, FDIC, said on Wednesday that its insured banks saw a 5.8% increase in their aggregate Q1 net income, driven by a rise in non-interest income.
The FDIC released its latest Quarterly Banking Profile today, which includes a comprehensive summary of financial results from 4,462 insured commercial banks and savings institutions.
In the first quarter, the companies reported an aggregate net income of $70.6B, up $3.8B from the prior quarter. Aggregate return on assets totaled 1.16%.
Non-interest income rose 7% from the previous quarter amid market movements and volatility as several large firms reported mark-to-market gains on certain financial instruments. Additionally, lower losses on the sale of securities also contributed to the increase in net income.
However, net interest income declined marginally at the banks (by 0.2% sequentially) as interest income decelerated slightly more than interest expense.
The net interest margin fell by two basis points to reach the pre-pandemic average of 3.25%.
The net charge-off ratio decreased three basis points to 0.67% during the quarter, but remained 19 basis points above the pre-pandemic average.
The annual loan growth rate for Q1 was 3.0%, below the pre-pandemic average of 4.9%, while domestic deposits rose for the third consecutive quarter.