The Federal Deposit Insurance Corp. says the banking industry earned $42.2 billion in the second quarter, up 23 per cent from the second quarter of 2012.
Banks' losses on loans tumbled 30.7 per cent from a year earlier to $14.2 billion, the lowest in six years. And bank lending increased 1 per cent from the first quarter. Greater lending helps boost consumer and business spending, leading to more jobs and faster economic growth.
Still, the report shows that the largest banks continue to drive the industry's profits while smaller institutions have struggled.