KBRA Financial Intelligence

Bank Performance in 2Q 2024

Net Income Stabilized YoY

Net income stabilized in 2Q 2024 with a year-over-year (YoY) increase of only 86 basis points (bps) from 2Q 2023. More significant growth was seen quarter-over-quarter (QoQ), with net income increasing 11.5% to $72 billion from $65 billion in 1Q 2024.

Deposits Decreased in 2Q

U.S. banks lost $200 billion in deposits in 2Q 2024, after making gains in the previous two quarters. This deposit loss is the largest since the bank runs in 1Q 2023.

Loan Portfolios Rebounded

Total loans increased 0.9% QoQ and 1.9% YoY in 2Q 2024, making this quarter’s loan growth the largest since 4Q 2022. Growth was primarily driven by increases in agricultural and consumer loans.

Delinquencies Continued to Tick Up

Delinquency rates in 2Q 2024 were stable QoQ, but climbed 20 bps YoY. Credit cards and investor properties (other nonfarm nonresidential loans) saw the largest increases in overdue loans, with delinquency rates rising 48 bps and 85 bps YoY, respectively.

Loan Loss Provisions Remained Stable

Provisions for loan and lease losses remained relatively stable at about $20 billion over the last seven quarters.