Major US banks ended the year on a strong note as rising demand for loans helped drive record profits, signaling a positive outlook for the banking sector. In the fourth quarter, several of the country’s largest lenders reported solid growth in average loans, reflecting increased borrowing by both consumers and businesses.
Bank of America saw an eight percent rise in average loans compared to a year earlier, while its net interest income, the difference between what the bank earns from lending and what it pays to depositors, reached a record 15.9 billion dollars. JPMorgan Chase experienced a nine percent increase in average loans, a key metric closely watched by investors as an indicator of future earnings potential.
This growth was broad-based, with borrowing increasing across consumer categories and commercial lending remaining a major driver throughout 2025 as businesses continued to invest and expand in a growing economy. Analysts expect this momentum to continue into 2026, citing stable macroeconomic conditions and favorable lending environments, with loan growth across US banks accelerating to more than five percent by the end of 2025.
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Average Loans Rising
Citigroup also reported strong results, with average loans rising seven percent in the fourth quarter, supported by its markets, US personal banking, and services divisions. Wells Fargo noted a similar trend, with its commercial loan portfolio growing twelve percent in the quarter and revenue increasing due to stronger auto and credit card lending.
Overall, the surge in borrowing demonstrates renewed confidence among consumers and businesses alike, positioning major US banks for continued profitability as demand for credit remains robust.
