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

The FDIC reported U.S. banks’ profits rose 3.6% in Q1 2026 to $80.5 billion as deposits increased for a seventh straight quarter and banks slightly boosted loss provisions. Overall asset quality was described as favorable with past-due loans down modestly, though past-due levels ticked up for residential mortgages and commercial real estate and remain elevated for credit cards, autos and multifamily CRE. FDIC Chair Travis Hill said capital and liquidity remain strong. Market impact: the report is a modestly positive datapoint for financials and broader risk appetite, supporting the S&P 500’s outlook, but lingering credit pockets and higher provisions temper upside and imply mixed near-term implications for equity markets.