WASHINGTON — The U.S. banking industry in 2014 posted its first yearly profit decline in five years, the Federal Deposit Insurance Corp. said Tuesday, as reduced revenues from mortgage-related activity and higher litigation expenses ate into earnings.
The vast majority of the nation’s 6,509 banks reported increased earnings for 2014, the FDIC said in its quarterly report on the health of the banking industry. But seven of the 10 largest banks posted lower earnings than the previous year, driving the industry total below its 2013 level.
The biggest banks are wrestling with new rules that have slowed — or in some cases stopped — banks from engaging in certain business lines and legal woes from conduct preceding the 2008 meltdown.
The FDIC said a main contributor to the decline was falling revenue from mortgage services.
