# US banking stocks drop 11-25% in 3 months

> US banking stocks fall 11-25% in 3 months as bond yields rise.
- Title: US banking stocks drop 11-25% in 3 months · Financialexpress
- Summary: 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.
- Keywords: us banking stocks, bond yields, banking crisis, treasury yields, banking indices, stock market, banking stocks, banking selloff, business, money, news, banking
- Source: Financialexpress — https://financialexpress.com/market/global-markets/us-banking-stocks-fall-up-to-25-in-3-months-is-a-bigger-crisis-brewing/4366372
- Author: Sunil Dhawan
- Published: 2026-10-21T13:39:28+00:00
- Read time: 1 min
- Topics: us banking stocks, bond yields, banking crisis, treasury yields, banking indices, stock market, banking stocks, banking selloff, business, money, news
## 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
## Key takeaway

US banking stocks dropped 11-25% in 3 months despite rising profits as bond yields surge.