Banking’s banner year

Banking’s banner year

Banking’s banner year US banks delivered a record year in 2025. Here is what stands out:

• $296B in total profits across 4,300+ banks
• 2.99% net interest margin, up from 2.92%
• $750B added to loan portfolios
• 1.56% delinquency rate, slightly down from 1.6%

Lower funding costs helped. Deposit costs declined to 2.04%, improving spreads even as rates remained elevated. For FIs, the message is clear: margins improved, credit remained resilient, and performance was strong. Sustaining that momentum in a more uncertain environment will require disciplined risk management and strategic growth. Source: https://www.ft.com/content/8fc14314-7300-41f1-acb6-bc525bf2157a