NEW YORK, NY--(Marketwire - Dec 6, 2012) - U.S. banking stocks have been on an impressive run in 2012. According to the Federal Deposit Insurance Corporation (FDIC) profits from U.S. banks in the third quarter were the best seen since the financial crisis. The KBW Bank Index (BKX) has gained 20 percent year-to-date, nearly double the S&P 500 Index's gain of 12 percent. The Paragon Report examines investing opportunities in the Banking Industry and provides equity research on JPMorgan Chase & Co. (NYSE: JPM) and Morgan Stanley (NYSE: MS).
Access to the full company reports can be found at:
The KBW Bank Index is on pace to best the broader markets for just the third time since 2003. U.S. banks collectively posted a net income of $37.6 billion in the third quarter, which is a 6-year high. Collective revenues in the third quarter grew 3 percent for the year prior, which was the largest gain seen in nearly three years, said the FDIC. This has been the 13th consecutive quarter in which industry profits have increased year-over-year.
"In previous quarters, we have noted that revenue growth has been very sluggish, and most of the improvement in earnings could be traced to lower provisions for loan losses," said FDIC Chairman Martin Gruenberg in a briefing. "Higher revenue contributed more to the increase in earnings than reduced provisions."
Paragon Report releases regular market updates on the Banking Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.ParagonReport.com and get exclusive access to our numerous stock reports and industry newsletters.
JPMorgan Chase & Co. is a leading global financial services firm with assets of $2.3 trillion and operations in more than 60 countries. For the third quarter of 2012 the company reported a record net income of $5.7 billion, compared to a net income of $4.3 billion in the third quarter of 2011. Shares of JPMorgan have gained over 10 percent in the past three months.
Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. For the third quarter of 2012 the company reported a loss of $1 billion compared to a net income of $2.2 billion in the year ago quarter. Shares of Morgan Stanley have gained over 8 percent in the past three months.
The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: http://www.paragonreport.com/disclaimer