Banks diverted earnings to reserves for "newly risky loans as the coronavirus tanked credit health and plunged the U.S. into a recession."
Boosted by a 6% gain in net interest income, the industry's strong Q1 performance followed a record year in 2018.
The Federal Reserve and FDIC found shortcomings in the bank's plans for unwinding in bankruptcy without disrupting the broader financial system.
Quarterly U.S. bank earnings show balance sheets getting stronger; business loans still performing well.
