Tuesday, June 12, 2007

US consumer weakness showing up in bank data

The Federal Deposit Insurance Corporation (FDIC) reported last week that charge-offs in nearly all loan categories at U.S. banks in the first quarter of 2007, including a 29.2 percent increase in credit card charge-offs...the FDIC produces a report called the "Quarterly Banking Profile", and in the most recent one the headlines are all bad:

Industry Reports Year-Over-Year Earnings Decline
 Rising Loan Loss Provisions Reduce Profits at Larger Institutions
 Net Interest Margins Decline at Small Institutions, Rise at Large Banks
 Loan Growth Slows for Fourth Consecutive Quarter
 Mortgage Assets Decline for Second Quarter in a Row

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