WASHINGTON: Net income at US banks declined 2.0 percent in the first quarter of 2016 from a year earlier, the first year-on-year drop since 2014, almost exclusively due to souring energy loans at large institutions, the head of the Federal Deposit Insurance Corporation said on Wednesday.
"Low energy prices have led to a sharp increase in non-current loans to oil and gas producers," said FDIC Chairman Martin Gruenberg at a media briefing. "The full impact of low energy prices on the banking industry remains to be seen particularly for consumer and business loans in energy-producing regions of the country."
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