Bank Profits to Reach $50 Billion in ’96

The nation’s banks are poised to earn a record $50 billion in 1996, a federal regulator said, even though credit card lending is becoming less profitable and delinquencies continue to rise. The Federal Deposit Insurance Corp. said the banking system remains strong and vigorous by many measures, with capital levels the highest since 1941. For the three months ending Sept. 30, banks earned $13.2 billion, down 4.3% from second-quarter profits of $13.8 billion and down from the all-time record earnings of $13.83 billion in the third quarter of 1995. FDIC Chairman Ricki Helfer said bank earnings remain on track to surpass $50 billion in annual earnings for the first time by the end of the year. The previous annual earning record was $48.8 billion in 1995.