U.S. Banks Post Net Income of $37.6 Billion in the Third Quarter -- Highest Amount in Six Years
The Paragon Report Provides Stock Research on Huntington Bancshares and KeyCorp
NEW YORK, NY -- (Marketwire) -- 12/10/12 -- U.S. banking stocks have been on an impressive run in 2012. According to the Federal Deposit Insurance Corporation (FDIC) profits from U.S. banks in the third quarter were the best seen since the financial crisis. The KBW Bank Index (BKX) has gained 20 percent year-to-date, nearly double the S&P 500 Index's gain of 12 percent. The Paragon Report examines investing opportunities in the Banking Industry and provides equity research on Huntington Bancshares Inc. (NASDAQ: HBAN) and KeyCorp (NYSE: KEY).
The KBW Bank Index is on pace to best the broader markets for just the third time since 2003. U.S. banks collectively posted a net income of $37.6 billion in the third quarter, which is a 6-year high. Collective revenues in the third quarter grew 3 percent for the year prior, which was the largest gain seen in nearly three years, said the FDIC. This has been the 13th consecutive quarter in which industry profits have increased year-over-year.
"In previous quarters, we have noted that revenue growth has been very sluggish, and most of the improvement in earnings could be traced to lower provisions for loan losses," said FDIC Chairman Martin Gruenberg in a briefing. "Higher revenue contributed more to the increase in earnings than reduced provisions."
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Huntington Bancshares Inc. is a $56 billion regional bank holding company headquartered in Columbus, Ohio. The company reported a record net income of $167.8 million in the third quarter of 2012, a 10 percent increase when compared to the $152.7 million posted in the previous quarter. Shares of Huntington Bancshares have gained over 20 percent year-to-date.
KeyCorp is one of the nation's largest bank-based financial services companies with assets of approximately $87 billion. The company currently offers investors an annual dividend of $0.20 per share for a dividend yield of approximately 2.5 percent. Shares of KeyCorp have gained over 5 percent year-to-date.
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