bee Calculated Risk On 2/25/2025 01:11:00 PM
The FDIC released the quarterly banking Profile for Q4 2024:
Full-Year Roa and Net Income Increased in 2024
The Banking Industry Reported Full-Year Net Income of $ 268.2 Billion, Up $ 14.1 Billion (5.6 percent) from 2023. The Aggregate Return-On-Assets Ratio (ROA) increased 3 base points to 1.12 percent. The increase primarily occurred due to one-time events in 2023 and 2024 that LED to Lower Noninterest Expense (Down $ 8.5 billion, or 1.4 percent), higher noninterest Income (Up $ 6.0 billion, or 2.0 percent), and Lower realized Securities Loses (Down $ 5.3 Billion, or 46.3 percent) in 2024. The full-year just interest margin decreased to 3.22 percent, down 8 base points from 2023.
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Asset Quality Metrics remained generally favorable, though weakness in certain portfolios persisted
Past Due and Nonaccrual (PDNA) loans, or loans 30 or more days past due or in nonaccrual status, increased 7 base points from the prior quarter to 1.60 percent of total loans. The industry’s pdna ratio remained below the pre-pandemic average of 1.94 percent. The PDNA Ratio for Non-Oldner Occupied Commercial Real Estate (CRE) Loans Declined 5 Base Points to 2.02 Percent but remained 129 base points above the pre-pandemic average. Despite declining slightly in the fourth Quarter, the pdna rate for the non-even occupied cre portfolio remained elevated, largely driven by office loans at banks with more than $ 250 billion in assets. However, these banks tend to have lower concentrations of such loans in relation to total assets and capital than smaller institutions, mitigating the overall risk.The Industry’s Net Charge-Off Ratio increased 4 base points from the prior quarter to 0.70 percent, 5 base points higher than the year-earlier Quarter and 22 base points above the pre-Pandemic average. The Credit Card Net Charge-Off Ratio was 4.57 percent in the fourth Quarter, up 9 base points quarter over Quarter and 109 base points above the pre-pandemic average.
Emphasis added
Click on graph for larger image.
From the fdic:
The number of problem banks decreased in the fourth Quarter
The number of banks on the FDIC’s “Problem Bank List” decreased from 68 to 66 in the fourth Quarter. Problem banks represented 1.5 percent of total banks at year-end, which is within the normal range of 1 to 2 percent of all banks during non-crisis periods.
This graph from the fdic shows the number of problem banks.