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EC SD | The most recent FDIC Quarterly Banking Profile report shows a shocking decline in net income for all banks participating in FDIC (see chart below). It really caught my eye since it is a near 50% drop in net income from prior quarters. So why such a dramatic drop? It looks like the biggest factor is from increasing credit risks, which forces a large loan loss reserve build...
The unfolding banking crisis is much bigger than just commercial real estate. Consumers are stretched thin with huge personal debt, credit cards, etc. and actual loan losses are on the rise. Well run banks will be fine, others may not be open much longer. I don't recommend investing in any bank stocks, as even the survivors will have lower profits from these high credit losses and the ongoing inverted yield curve, not to mention their unrealized losses on reserves which will need to be dealt with at some point.
 (FDIC Quarterly Net Income (full).jpg)
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 FDIC Quarterly Net Income (full).jpg (90KB - 25 downloads)
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There will be bank failures caused by commercial real estate losses
