The Federal Deposit Insurance Corporation published its Quarterly Banking Profile for fourth quarter 2024, reporting full-year 2024 performance for FDIC-insured institutions. The results show higher industry earnings and improving net interest margin as short-term rates fell, alongside a sharp rise in unrealized securities losses and modest deterioration in some asset quality indicators. Full-year 2024 net income totalled USD 268.2 billion, up 5.6 percent from 2023, with a return on assets of 1.12 percent and 6.7 percent of banks unprofitable. Fourth-quarter net income was USD 66.8 billion, up 2.3 percent quarter on quarter, driven by a USD 3.8 billion increase in net interest income as interest expense declined more than interest income; the net interest margin rose 5 basis points to 3.28 percent. Total unrealized losses on held-to-maturity and available-for-sale securities increased to USD 482.4 billion, up USD 118.4 billion (32.5 percent) from the prior quarter. Total loans grew USD 105.2 billion (0.8 percent) in the quarter, with the largest increases concentrated in categories affected by reclassifications following finalized changes to loan reporting, while domestic deposits rose USD 214.4 billion (1.2 percent) and estimated uninsured domestic deposits increased USD 218.5 billion (3.0 percent). Asset quality metrics remained generally favorable but the past-due and nonaccrual rate rose to 1.60 percent and the net charge-off rate increased to 0.70 percent, with credit card and nonfarm nonresidential commercial real estate contributing to the increase. The number of banks on the FDIC’s Problem Bank List fell by two to 66 and one bank failed in the quarter. The Deposit Insurance Fund balance was USD 137.1 billion at 31 December 2024 and the reserve ratio increased to 1.28 percent; FDIC projections indicate it remains on track to reach the statutory minimum of 1.35 percent by 30 September 2028 under the existing restoration plan.

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