Forbes (February 28, 2012)
U.S. banks “took in nearly $120 billion in net income last year, the most since 2006, but that doesn’t mean they are back in their glory days.” What’s the problem? “Banks can’t seem to increase their top line numbers.” Profits are stemming from layoffs, cost cutting and loss provisions. “Banks are having a tough time making money off the loans they make.” Net operating revenue has actually dropped during three of the last four quarters and “full-year net operating revenue declined for only the second time since 1938.”U.S. banks “took in nearly $120 billion in net income last year, the most since 2006, but that doesn’t mean they are back in their glory days.” What’s the problem? “Banks can’t seem to increase their top line numbers.” Profits are stemming from layoffs, cost cutting and loss provisions. “Banks are having a tough time making money off the loans they make.” Net operating revenue has actually dropped during three of the last four quarters and “full-year net operating revenue declined for only the second time since 1938.”
Tags: Banks, Loans, Loss provisions, Net income, Operating revenue, U.S.
