From Financialexpress · Sunil Dhawan · · 1m 20s
US banking stocks drop 11-25% in 3 months
US banking stocks fall 11-25% in 3 months as bond yields rise.
In brief
US banking stocks fall 11-25% in 3 months as bond yields rise. US banking stocks dropped 11-25% in 3 months despite rising profits as bond yields surge. Originally reported by Financialexpress.
US banking stocks fall
US banking stocks have fallen between 11% and 25% in the last 3 months despite rising profits.
Banking indices drop
The KBW Nasdaq Bank Index fell over 10% in the last 3 months, while the Dow Jones US Banks Index dropped 7% in the last 3 months.
Big banks report profits
Five major US banks reported combined third-quarter profits of over $36 billion, up 13% from 2025.
Global banking selloff
Banking stocks across the US, Europe, and Asia have fallen 15-30% from recent highs despite record stock indexes.
Bond yields rise
The US 10-year Treasury yield hit 5.35% on October 7, its highest since 2002, driving bank stock sell-offs.
FICC revenue drops
Morgan Stanley, JPMorgan, and Bank of America saw FICC revenues fall 7%, 4%, and 17% respectively in the quarter.
Debt concerns grow
US debt has crossed $40 trillion with interest costs over $1 trillion, raising global debt crisis fears.
Banking crisis warning
Citizens Financial Group CEO Bruce Van Saun said borrowing cost worries are 'overdramatized' but uncertainty remains.
“I think those concerns are a bit overdone”
The takeaway
US banking stocks dropped 11-25% in 3 months despite rising profits as bond yields surge.
