The Q3/2025 financial results of numerous banks reveal a promising outlook, driven by credit expansion and improved non-interest income, signaling that the toughest phase of the profit cycle may be behind us. However, the stock market has responded with caution, scrutinizing profit quality, net interest margin positioning, potential delays in bad debt formation, and lingering legal risks. As risk premiums rise amid macroeconomic uncertainties and capital flows, valuation multiples are compressing, tempering the short-term positive impact of profit growth.