Transcript for Total Bank Revenue Surges in 3rd Quarter, Hits $171.3 Billion
Okay. It's Wednesday November 26 the markets in new Yorker open and a big number this morning is 171. Point three billion that. Out of revenue US banks collected last year four point 8% increase. They eat their best quarter since the recession this according to the FDIC which tackling its data across. All it DIC insured banks. Total profit Aaron by the banks also checked in at 38 point seven million the fourth highest figure on record. Hello everyone I'm time Hernandez in New York you with a deep tap on the banking industry's big corder if Scott am the street that morning Scott. Good morning tied to the financials are seeing some are best robust revenue growth here what's behind it. Well look I mean the economy is doing better so the banks are willing to lend more revenues had their biggest year over year increase. Since 2009 so this is a great. Signed for banks. And there was a lot of data in this report that showed that the banks are not only healthier but they're willing to. Take a step out and lend more and that's what's really gonna drive the economy going forward. Why is that why are they were in England now. Well look in the report you know we saw that loans written off as on collectible -- 41%. Over the past year. So that means that consumers are able to make their payments. At least more consumers are and there are conditions within the economy that show that I mean. If you don't have a job you're not going to be able to Hampshire depth or actually seeing a lot of improvement in the labor market. And that's trickling down to the lending market so if you have a job you're going to be in a better position to pay off your loan so. The whole you know concept of banking is wall and I'm gonna land she will you be able to pay me back and so the banks think that. Well more consumers are in a position to pass back Serena won the more money. Aren't some saw the GDP revised upward again yesterday this really all about the economy given the cyclical nature of financials. Also will huge part of mean you know we did have a roller coaster ride of GDP this year but that was largely due to cold weather in the beginning of the year and then a GDP recovered. And then it dipped a little bit but then this latest revision actually showed that the GDP went out. And we saw that expansion so again you know foreseeing. People spend more money you know GDP. And consumer spending are very closely related consumer spending drives two thirds of GDP so Jennifer seeing people spend more during a better positioned after alone. You know more money being pumped into the economy so the banks are noticing that. All right so while the broader markets have risen tremendously in the past five years financial stocks have actually lags so. Is this a sign now that they're finally ready to catch up. I think it's certainly encouraging I mean you know look this is a great sign and in the bank suffered so much during a recession I mean. Aside from the Bal outs I mean a lot of them were close to being bankrupt and some of them didn't go under. As we saw. Back in 2008 so. Again we're only four of the five or six years since a recession we're already seeing such great profits in great revenues. And that's the key thing here in this report. We saw that banks did well largely on the heels of better revenues not necessarily because of cost cutting measures a lot of time to see companies cut cost. As a way to drive corporate profits but in this case we saw the opposite and in any case you want to see healthy revenue that means the banks are doing better. All right Scott down from the street thank you for joining us this morning thanks so much tied. All right keep up with the latest headlines right here on abcnews.com even watching the big number attack Hernandez New York.
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