Big banks have done lots moaning lately. Every day, it seems, bankers are boo-hooing
about financial regulations cutting into their profits. The bigger the bank the louder the sobs.
To replace lost revenues banks are charging new fees and eliminating services that previously were free. Sometimes the new fees spark a hail-storm of protest and the banks back off. Like last year’s failed debit card fee.
But are the banks really as bad off as they want us to believe?
In a word, no.
Banks may not be making the incredibly huge profits that they were before the recession, but the banking industry continues to rake in billions of dollars in annual profits. Some banks are making more money than Apple, Google and other stock market superstars.
The website Remapping Debate has an interesting report that looks at bank profits over the last seven years.
“When looking at the moving average for the banks, only Bank of America has had its moving average go down each year (although it still earned an average of close to $10 billion a year for the seven-year period). JP Morgan Chase’s moving average has gone up every year since a 2008 low, and its 2011 profits were almost double what it earned in 2005. Wells Fargo’s moving average has gone up each year,” the website reports.
Here’s the full Remapping Debate report: Bank profits: not so shabby after all