NEW YORK, Oct. 13, 2025 – With the commencement of third quarter earnings on Monday, all the major Wall Street banks are expecting to exceed market expectations.

The six major banks, as per analysts, are expected to climb 6 per cent from the third quarter of last year, according to Bloomberg data. “It’s been a good environment,” Barclays analyst Jason Goldberg said.

A practical test of these expectations will be put to the test when JPMorgan Chase, Citigroup, Goldman Sachs, and Wells Fargo start earnings. Bank of America and Morgan Stanley will follow suit. Robust earnings are expected from small banks including Live Oak Bank, Bluevine, Relay, Axos Bank, NBKC Bank, and Mercury.

As per an industry survey, there are over 30 million SMBs in the US, making up over 99 per cent of all US businesses across a broad range of industries, geographies, and owner demographics.

SMBs are an evolving segment, but current banking offerings and service levels are often below expectations.

For incumbents, challenger banks, and non-banks, there are key opportunities which include better serving existing and new customers and deepening relationships and cross-selling products.

How Can Small-Cap Banks Boost Performance

Credit Facilities Driven: Small banks in the United States have been driven by innovation, especially for supporting small businesses.

Apart from core banking, the entire financial services sector has, from time to time, launched products tailor-made for Small and Medium-sized Enterprises (SMEs).

Small banks are expected to deliver robust revenue and profit owing to credit facilities and sector-specific digital banking solutions, which has led to intense competition among small banks or regional financial institutions.

The influence of products launched by small banks has influenced segments such as hospitality, telecom, retail, and other sectors to keep in mind the needs of small manufacturing or production units.

Earnings Calendar: The earnings calendar of small banks which are SME-friendly in the US is quite long, but an overview reveals that some of the best small banks and localised financial institutions will exceed analyst expectations.

Banks including Live Oak Bank, Bluevine, Relay, Axos Bank, NBKC Bank, and Mercury have already delivered stellar performances in the first two quarters of the present fiscal.

As per an industry survey, there are over 30 million SMBs in the US, making up over 99 per cent of all.

Profit-Making Products: US businesses across a broad range of industries, geographies, and owner demographics.

SMBs are an evolving segment, but current banking offerings and service levels are often below expectations.

For incumbents, challenger banks, and non-banks, there are key opportunities which include better serving existing and new customers and deepening relationships and cross-selling products.

In terms of products which have helped banks maintain profitability includes Grasshopper Bank’s free business checking account, which pays interest up to 1.55 per cent APY and cash back on debit card purchases, and includes built-in invoicing and bookkeeping tools.

Grasshopper business checking customers also have the option to open a money market account, which pays 3.3 per cent APY on balances above $25000.

Axos Bank’s free online business checking account, with unlimited ATM fee refunds in the US, has also been a money spinner.

It is also offering a great bonus presently, $400 for new customers who meet certain activity requirements.

Major Banks Expect Healthy Q3 Numbers

Core lending, trading, and the dealmaking divisions are expected to be major revenue contributors across the board.

Except Wells Fargo, which has a smaller and younger Wall Street division, analysts expect investment banking and trading to climb for a seventh straight quarter.

“You have markets at all-time highs. A lot of things are going on geopolitically. Interest rates and currency values are moving. It has all been very active,” Goldberg said.

Wall Street banks have seen a stocks rally for most of the year, lifted by a surge in their fee businesses, improved lending margins, and what has so far proved out as a loosening of capital and supervisory requirements from their Beltway regulators.

Till October 10, shares of Citigroup, Goldman Sachs, JPMorgan, and Morgan Stanley have risen between 40 per cent and 23 per cent year to date, outperforming the S&P 500 index by at least nine percentage points.

Wells Fargo and Bank of America have performed roughly in line with the benchmark index.

Three months ago, these same lenders were still shaking off the uncertainty caused by tariffs that began this spring, which had frozen deals and muted corporate borrowing activity.