US Banks Post Stronger Q4 Earnings Driven by Loan Growth

Major US banks reported robust fourth-quarter earnings for 2025, driven by strong growth in loans, a trend analysts say could support continued profitability for lenders.

Bank of America saw average loans rise by 8% year-on-year, with net interest income reaching a record $15.9 billion. JPMorgan Chase reported a 9% increase in average loans, reflecting strong lending across both consumer and commercial sectors.

“We’ve seen growth across all consumer borrowing categories, but 2025 was largely a commercial lending story,” said Bank of America CFO Alastair Borthwick. “Our clients have continued to invest in a growing economy, which supported our Q4 results.”

Analysts at S&P Global Market Intelligence noted that US bank loan growth accelerated to 5.3% year-on-year by the end of 2025 and is expected to continue into 2026, supported by stable macroeconomic conditions and favorable lending trends. Citigroup recorded a 7% rise in average loans in Q4, driven by its markets division and personal banking services, while Wells Fargo posted 12% growth in commercial loans, alongside revenue gains from auto and credit card lending. Wells Fargo CFO Mike Santomassimo highlighted that the pace of loan growth picked up for the first time in several quarters.

Bank executives also flagged potential risks from regulatory proposals. Citigroup CFO Mark Mason expressed concerns over a proposed 10% cap on credit card interest rates, cautioning that it could limit credit access and impact the broader economy. He also emphasised the importance of maintaining the Federal Reserve’s independence.

Despite strong earnings, the S&P 500 banks index fell about 1% in early trading, reflecting investor caution amid regulatory uncertainty and broader economic considerations.

The fourth-quarter results underscore the resilience of US banks, driven by both consumer and commercial lending, and signal optimism for the sector heading into 2026.