3Q25 Quarterly Bank Report: robust earnings in 3Q25

CPG’s Claude Hanley and Matthew Prince monitor the quarterly financial trends of publicly traded banks and provide implications for the industry.

Takeaways from the 3Q25 Bank Report:

• Median ROTCEs for all asset tiers were double-digit, and the median stock price-to-tangible book value increased in each asset tier.
• Margins expanded for the fourth consecutive quarter, even though funding costs remained relatively stable for all asset tiers. We expect further NIM expansion in the fourth quarter as the Fed’s recent rate cuts will reduce funding costs.
• While some banks reported significant charge-offs tied to borrower fraud or other one-time events, credit conditions overall remained benign.