Monday, June 10, 2013

Strength in Banking

One sector that has really been doing well in our economy this year has been the banking industry. In the first quarter of this year, FDIC-insured institutions had net income of more than $40 billion. That's an increase of 16 percent over the same period in 2012.

The banking sector's profits have now increased on a year-over-year basis for 15 straight quarters - that's nearly four years. Basically, since the market rebounded in early 2009, the banking industry has been gaining strength. It's widespread, too - half of the 7,000 banks with FDIC insurance reported their earnings had increased last quarter.

For the year, through Friday, the S&P 500 has been very strong, showing an increase of 12.3 percent. But the financial sector within the S&P has been even stronger, rising by 21.3 percent.

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