U.S. banks report 13.5% jump in profits, FDIC reports

WASHINGTON >> The U.S. banking industry saw its profits jump 13.5% to $79.3 billion in the third quarter of 2025, the Federal Deposit Insurance Corporation reported today.

The FDIC said the stronger profits were primarily due to growth in non-interest income expense, as well as banks booking smaller loss provision expenses. In the second quarter, the banking sector reported higher provision expenses, primarily thanks to the completed merger of Capital One and Discover Financial.

While the banking sector remained healthy overall, the regulator flagged the industry is still grappling with historically high past-due rates on some types of loans, notably commercial real estate, auto and credit card loans.

Banks with over $250 billion in assets reported a past-due rate of 4.18% for non-owner