U.S. banks report profit uptick in first quarter: FDIC

U. S. banks report profit uptick in first quarter: FDIC People walk around the Financial District on the morning after Zohran Mamdani’s election win in New York City, U.

S. , November 5, 2025. REUTERS/Angelina Katsanis · Reuters By Pete Schroeder Wed, May 27, 2026 at 4:23 PM GMT+2 1 min read By Pete Schroeder WASHINGTON, May 27 (Reuters) - U.

S. banks reported a 3. 6% ‌increase in their profits in ‌the first quarter of 2026, rising to $80.

5 billion ​as domestic deposits grew again and banks set aside slightly more against potential losses, the Federal Deposit Insurance ‌Corporation reported Wednesday. The ⁠FDIC reported that bank deposits had risen for the seventh ⁠consecutive quarter, and while bank provision expenses were up 2. 3% in ​the first ​quarter, they were ​lower than a ‌year prior.

The FDIC said asset quality metrics remained favorable, with the level of past due loans falling slightly. However, it noted that past due ‌levels for residential loans ​and commercial real estate ​rose slightly, ​and levels remained elevated ‌for loans for credit ​cards, autos, ​and multifamily commercial real estate. FDIC Chairman Travis Hill said in a ​statement that ‌bank capital and liquidity levels ​remained strong.