U.S. Banks Post Net Income of $37.6 Billion in the Third Quarter - Highest Amount in Six Years
Posted on December 12, 2012 at 08:20 AM EST
The Paragon Report Provides Stock Research on Hudson City Bancorp and Zions Bancorporation
NEW YORK, NY -- (Marketwire) -- 12/12/12 -- U.S. banking stocks have been on an impressive run in 2012. According to the Federal Deposit Insurance Corporation (FDIC) profits from U.S. banks in the third quarter were the best seen since the financial crisis. The KBW Bank Index (BKX) has gained 25 percent year-to-date, nearly double the S&P 500 Index's gain of 13.5 percent. The Paragon Report examines investing opportunities in the Banking Industry and provides equity research on Hudson City Bancorp, Inc. (NASDAQ: HCBK) and Zions Bancorporation (NASDAQ: ZION).
The KBW Bank Index is on pace to best the broader markets for just the third time since 2003. U.S. banks collectively posted a net income of $37.6 billion in the third quarter, which is a 6-year high. Collective revenues in the third quarter grew 3 percent for the year prior, which was the largest gain seen in nearly three years, said the FDIC. This has been the 13th consecutive quarter in which industry profits have increased year-over-year.
"In previous quarters, we have noted that revenue growth has been very sluggish, and most of the improvement in earnings could be traced to lower provisions for loan losses," said FDIC Chairman Martin Gruenberg in a briefing. "Higher revenue contributed more to the increase in earnings than reduced provisions."
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With over $40 billion in assets, Hudson City is the largest thrift institution headquartered in New Jersey. For the nine months ended September 30, 2012, the company reported net income of $201.2 million, compared to a net loss of $375.5 million in the year ago period. Shares of Hudson City have gained nearly 30 percent year-to-date.
Zions Bancorporation is one of the nation's premiere financial services companies, consisting of a collection of great banks in select Western U.S. markets with combined total assets exceeding $50 billion. Zions reported a net income of $62.3 million in the third quarter of 2012, compared to $55.2 million in their third quarter of 2011. Shares of the company have gained 25 percent year-to-date.
The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at:
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