US banking giants reap bigger profits as borrowers seek more loans

NEW YORK, Jan 14 (Reuters) – U.S. banking giants boosted their profits in the fourth quarter, buoyed by increasing demand from borrowers that could bode well for lenders’ future earnings.

Bank of America‘s average loans grew 8% from a year earlier, and its net interest income – or the difference between what it earns from loans and pays out in deposits – surged to a record $15.9 billion, it reported on Wednesday. At rival JPMorgan Chase, averaged loans climbed 9%. Loan growth is closely viewed by investors as a positive indicator for banks’ businesses.

“We’ve seen growth in all of the consumer borrowing categories,” Bank of America Chief Financial Office Alastair Borthwick told reporters on a conference call. “That’s helped us in Q4, but generally, the story in 2025 was more of a commercial borrowing story, and we’ve been gratified by the fact that our clients in a growing economy have continued to invest to support their businesses.”

Analysts at S&P Global Market Intelligence “are optimistic about continued momentum into 2026, driven by macroeconomic stability and favorable lending conditions,” they wrote in a report Tuesday. They estimated loan growth across U.S. banks “accelerated significantly” by the end of 2025, growing 5.3% year-on-year.

Citigroup‘s average loans climbed 7% in the fourth quarter, driven by is markets, U.S. personal banking and services businesses, it reported on Wednesday.

“We saw the pace of loan growth pick up for the first time in a while,” Wells Fargo Chief Financial Officer Mike Santomassimo told reporters on a conference call. Loans grew 12% for its commercial businesses in the fourth quarter, while revenue also increased due to auto and card lending.

(Reporting by Saeed Azhar in New York, Arasu Kannagi Basil in Bengaluru and Nivedita Balu in Toronto, editing by Lananh Nguyen and Nick Zieminski)