Bank Profits Hit 10-Year High; NDFI Lending Stays Tight

U.S. banks reported $90.18 billion in net income in the second quarter, the highest level in 10 years, S&P Global Market Intelligence reported. The increase was driven by larger balance sheets, wider margins, and growth across several revenue categories, including investment banking and underwriting. Net interest income and noninterest income both grew, while the median net interest margin rose 10 bps to 3.87%.

Meanwhile, S&P reported that banks remained cautious about lending exposure to nondepository financial institutions as competition pushed down pricing and weakened loan terms.