Banking Net Income $69.9 Billion In Q2 2025

Posted: Aug 27 2025

The banking industry reported a return on assets ratio of 1.13% and aggregate net income of $69.9 billion in the second quarter of 2025, a decrease of $677.3 million, or 1%, from the prior quarter, according to the FDIC’s most recent Quarterly Banking Profile. Net income for the industry would have increased in Q2 absent an increase in provision expenses related to Capital One’s acquisition of Discover earlier this year.

Quarterly net income for the 3,982 community banks insured by the FDIC totaled $7.6 billion in Q2, an increase of $842.9 million, or 12.5%, from Q1, the agency said. Higher net interest income and noninterest income more than offset increases in noninterest expense and provision expense.

Domestic deposits increased $101.5 billion, or 0.6%, from Q1, rising for a fourth consecutive quarter. Estimated uninsured domestic deposits increased $186.4 billion, or 2.4 %, offsetting a $87.3 billion, 0.8%, decline in insured domestic deposits.

The Deposit Insurance Fund balance increased $4.4 billion to $145.3 billion in Q1. The reserve ratio increased five basis points during the quarter to 1.36%. As of June 30, the reserve ratio exceeded the statutory minimum and, beginning with Q3, the FDIC will no longer operate under the restoration plan.

The total number of FDIC-insured institutions declined by 41 during the second quarter to 4,421. During the quarter, two banks opened, one bank failed, five banks were sold to non-FDIC-insured institutions and 37 institutions merged with other banks.

To read more, visit: https://www.fdic.gov/news/press-releases/2025/fdic-insured-institutions-reported-return-assets-113-percent-and-net