Big Banks Hit Record $60 Billion In Q2 Profits From Trump Tax Law
August 27, 2018
Big banks continue to be big winners from the Trump tax law. Banking profits hit a record $60 billion in the second quarter, primarily as a result of the Trump tax law. Meanwhile, real wages for workers have actually declined over the past year.
Reuters: U.S. banking profits hit record $60 billion in second quarter: FDIC
By Pete Schroeder
The U.S. banking sector reported a record $60.2 billion in profits in the second quarter, up 25.1 percent from the same period one year ago.
The Federal Deposit Insurance Corporation reported on Thursday that a little more than half of those gains resulted from a lower effective tax rate. The other half of the gains came from higher net interest income, it said.
Only 3.8 percent of banks reported net losses, while more than 70 percent reported year-over-year growth.
Banks had reported a record $56 billion in profits in the first quarter, as they took advantage of the lower tax rates passed by Congress at the end of 2017.
Profits would have increased just 11.7 percent in the second quarter without the boost from the new tax law, the FDIC said.