U.S. banking giants reported strong fourth-quarter profits, driven by rising demand for loans from both commercial and consumer borrowers. The trend could signal healthy earnings for lenders in 2026.
Bank of America (BAC) saw its average loans rise 8% year-on-year, while net interest income the difference between earnings on loans and payouts on deposits—hit a record $15.9 billion.
At JPMorgan Chase (JPM), average loans climbed 9%, reflecting a broad increase in consumer and business borrowing.
“We’ve seen growth in all of the consumer borrowing categories,” said Bank of America CFO Alastair Borthwick. “In 2025, commercial borrowing was particularly strong as clients continued to invest to support their businesses.”
READ ALSO:
-
77 Days To Go: Tier-1 Banks Dominate Recapitalisation as Mid-Tier Lenders Face Pressure
-
Bank of Japan Urged to Anchor Inflation Expectations at 2% Amid Rising Yields
Citigroup reported a 7% increase in average loans, driven by U.S. markets, personal banking, and services.
Wells Fargo saw 12% loan growth in its commercial segment, aided by auto and card lending, according to CFO Mike Santomassimo. He said the fourth-quarter momentum marked the first surge in lending pace in a while.
Analysts at S&P Global Market Intelligence said loan growth across U.S. banks accelerated to 5.3% year-on-year by the end of 2025, a trend they expect to continue in 2026 due to macroeconomic stability and favorable lending conditions.
Bank executives also flagged concerns over President Donald Trump’s proposed 10% cap on credit card interest rates, saying it could limit lending and curb economic growth.
Citigroup CFO Mark Mason said it was too early to assess the impact given the lack of details.
“An interest rate cap would restrict access to credit to those who need it the most and could harm the economy,” Mason said.
Wells Fargo’s Santomassimo echoed that view, calling for careful consideration of any proposals.
READ ALSO:
-
African Central Bank Governors Renew Push for Monetary Integration
-
CBN Orders Banks to Withdraw Non-compliant Advertisements
Bank executives reiterated support for the Federal Reserve’s independence after the Trump administration opened an investigation into Fed Chair Jerome Powell.
“We expect the next Fed chair to operate with the same level of independence,” Mason said.
Despite the strong earnings reports, the S&P 500 banks index fell about 1% in early trading Wednesday, reflecting broader market caution.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
