Home Industries Business Services Webster’s Q2 profit soars 42.5% year over year to $258.8M

Webster’s Q2 profit soars 42.5% year over year to $258.8M

By

Matthew McNulty

-

07/17/2025

WebsterBank-1 — WEBSTER FINANCIAL Corp., the parent company of Webster Bank, posted a $258.8 million profit in the second quarter of 2025, up 42.5% from $181.6 million in the same quarter last year. / PBN FILE PHOTO

STAMFORD, Conn. – Webster Financial Corp., the parent company of Webster Bank, reported a profit of $258.8 million for the second quarter of this year – a significant 42.5% increase compared with the $181.6 million it earned during the same period in 2024. The increase was mostly the aftereffect of a nearly $50 million loss

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STAMFORD, Conn. – Webster Financial Corp., the parent company of Webster Bank, reported a profit of $258.8 million for the second quarter of this year – a significant 42.5% increase compared with the $181.6 million it earned during the same period in 2024. The increase was mostly the aftereffect of a nearly $50 million loss the bank recorded a year ago – a one-time hit from the sale of investment securities that didn't recur in 2025. Webster – the holding company for Webster Bank, which has seven locations in Rhode Island – also reported earnings of $1.52 per diluted share, a nearly 50-cent increase from the $1.03 per diluted share posted in July 2024. The results topped Wall Street expectations. The average earnings estimate of nine analysts surveyed by Zacks Investment Research was $1.41 per diluted share. "Webster produced impressive financial and strategic results this quarter," said John R. Ciulla, the bank's CEO and chairman. "These accomplishments bode well for Webster’s future success, as we realize exciting new opportunities to grow our business." Net interest margin, a key performance metric for banks, was 3.44% for the second quarter of 2025, up from 3.39% for the same time last year. Meanwhile, net interest income was $621.2 million for the quarter, up 8.5% year-over-year from last year's $572.3 million. Webster also reported a revenue net of interest expense of $715.8 million for the quarter, similarly exceeding Street forecasts. Seven analysts surveyed by Zacks expected $711.7 million. This quarter's figure represents a 17% increase year-over-year from the $612 million reported in the second quarter of 2024. Bank leadership celebrated Webster's healthy quarterly performance after the earnings report was released on Thursday. "In the second quarter, Webster generated solid growth and returns, while at the same time maintaining our strong operating position," said Neal Holland, senior executive vice president and chief financial officer. "Our asset quality metrics improved, we returned capital to shareholders and continue to invest for future growth." (Material from The Associated Press was used in this report.) Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.