U.S. bank earnings rose to $38.7 billion in the 3rd quarter of 2014 as institutions increased trading & other revenue, according to data released on Tuesday by the Federal Deposit Insurance policy Corp (FDIC).

Bank incomes throughout the quarter that ended on Sept. 30 rose $2.6 billion, or 7.3 %, from $36.1 billion in the exact same duration a year previously, the FDIC siad.

For the 1st time in 5 years, banks set aside more money in case of losses on loan. That reversed a current trend in which institutions slashed those funds to make up for weak mortgage and also trading income.

Loan-loss regulations totaled $7.2 billion in the 3rd quarter, up $1.4 billion, or 23.9 %, from a year previously, the FDIC said.

‘Most importantly, 3rd quarter income growth was based on revenue growth rather than lower loan-loss provisions,’ FDIC Chairman Martin Gruenberg said in a statement. ‘This can be a more sustainable foundation for continuous incomes growth going forward.’

Generally, bank income rose $7.8 billion, or 4.8 %, to $171.3 billion during the quarter. That was the biggest year-over-year rise in operating income since completion of 2009, the FDIC said.

Banks saw approach loan sales, and also trading income was up 25.3 %. Net interest income raised by $2.4 billion, or 2.3 %, from a year previously, the FDIC said.

Salary and benefit expenses were higher during the quarter, even though banks have reduced total head count. Litigation expenses at big banks went dropped from a year earlier, the FDIC said.

Gruenberg said regulators remain concerned about rate of interest risk as banks purchase assets with longer maturities. He said Bank’s also are extending a lot more high-risk loans to commercial borrowers that already have debt.