Loan sales increased 46% in the three months ended September. Additionally, other loan categories were broadly higher, along with 2.4% rise in auto loans. Bank loan balances hit a record $8.2 trillion in the third quarter, adding onto loan balance growth over the second quarter, which increased above $8 trillion, reports Ryan Tracy for the Wall Street Journal. During the third quarter, profits for U.S. banks totaled $38.7 billion, up from $36.1 billion in the year earlier period. [Bank ETFs Could see Stellar Revenue Growth]
XLF is not alone in attracting in new assets. After bleeding assets in October, the iShares U.S. Financials ETF (NYSEArca: IYF) added $125 million in new capital last month. The $1.3 billion IYF allocates nearly 28% of its combined weight to Berkshire Hathaway (NYSE: BRK-B), Wells Fargo (NYSE: WFC), J.P. Morgan Chase (NYSE: JPM), Bank of America (NYSE: BAC) and Citigroup (NYSE: C).
Several of the marquee constituents in XLF and IYF trade at discounts to the S&P 500. Additionally, dividends are beginning to rise as well. The average financial sector yield dipped to 1.22% in December 2009 from 4.44% in December 2008, and now, yields are back up to 1.6%. Financials have been among the biggest drivers of S&P 500 dividend growth over the past several years. [Bank ETFs as Value Plays]
Financial Select Sector SPDR
