US banking sector profits fall by over 36%

Last year, profits in the US banking sector fell by 36.5% compared to 2019 to $147.9 billion due to the coronavirus pandemic, Report states, citing foreign media.

According to the US Federal Deposit Insurance Corporation (FDIC), the net profit of 5,001 banks and savings organizations in the fourth quarter of last year increased by 9.1% year-on-year to $59.9 billion.

"Despite the decline in profit margins, banks have proven resilient since the middle of the epidemic. Along with the low-interest-rate environment of economic uncertainty, it will continue to strain the banking sector and put negative pressure on income and net interest margins. However, the banking sector maintains strong capital and liquidity levels that can reduce future potential losses."

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