Even though banks saw their net income drop in the final quarter of 2025, they did report a four-year high return on assets (ROA) ratio of 1.24%, according to fourth quarter numbers released Tuesday by the federal bank deposit insurance agency.
The 2% decline in aggregate net income (down $1.6 billion to $77.7 billion), the Federal Deposit Insurance Corp. (FDIC) said, did not hold down the overall 2025 net income growth for banks, which was up 10.2% from the previous year (for $295.6 billion).
ROA, the agency said, likewise finished the year strong, matching the mark set in 2021 and the highest level since then. FDIC has described ROA as the basic yardstick of bank profitability.
Other key points from the fourth quarter call reports, the FDIC said, included:
- Loans grew by 2.0% from the prior quarter; annual growth was 5.9%.
- Some commercial real estate and consumer portfolios have elevated delinquency rates (although, overall, asset quality metrics remained generally favorable).
- The agency’s deposit insurance fund (DIF) reserve ratio increased 2 basis points to 1.42%.