Banks report 13.5% profit jump in third quarter 

U.S. banks posted a 13.5% increase in profits, reaching $79.3 billion in the third quarter of 2025, according to the FDIC.

The profit rise was largely fueled by growth in non-interest income and a reduction in loss provision expenses compared to the previous quarter.

The big picture: The prior quarter’s higher provision expenses were largely due to the completed merger of Capital One and Discover Financial. • The banking sector is still dealing with historically high past-due rates on some loan types, including commercial real estate, auto, and credit card loans. • For non-owner occupied commercial real estate loans at banks with over $250 billion in assets, the past-due rate was 4.18%, down from last year’s 4.99% peak, but still notably higher than the pre-pandemic average of 0.59%.