WASHINGTON, Feb 21 (Reuters) - The U.S. banking sector recorded $59.1 billion in profits in the fourth quarter of 2018, down slightly from the third quarter’s record level but still up significantly from the year prior, according to data from the Federal Deposit Insurance Corporation.
U.S. bank profits were up 18.5 percent in the fourth quarter of 2018 compared to one year prior, after adjusting for changes spurred by the 2017 tax law. The FDIC said the profits were driven by lower taxes and higher operating revenues.
The FDIC also reported that the number of “problem banks” had fallen from 71 to 60 in the fourth quarter, marking the lowest level of struggling institutions since the first quarter of 2007. (Reporting by Pete Schroeder Editing by Tom Brown)