FDIC-insured institutions drop in Q1 profits

The 4,568 commercial banks and savings institutions insured by the Federal Deposit Insurance Corp. reported an aggregate decrease in profits during the first quarter.

Aggregate net income for the first quarter was $64.2 billion, according to a news release. Data provided by the FDIC indicates net income dropped by 19.6% from the same quarter of 2023.

"The banking industry continued to show resilience in the first quarter," said Martin Gruenberg, FDIC chair, in the release. "However, the banking industry still faces significant downside risks from the continued effects of inflation, volatility in market interest rates and geopolitical uncertainty."

Compared with the fourth quarter, aggregate net income rose by 79.5%.