Inflation Threat Can’t Tame Enthusiasm at U.S. Regional Lenders
- Smaller banks see brighter days after strong earnings season
- Spending, credit are bright spots even with tepid loan growth
A PNC Bank branch in Washington, D.C.
Photographer: Stefani Reynolds/BloombergThis article is for subscribers only.
U.S. regional bank executives say they are optimistic about the nation’s economic recovery and their own prospects for the remainder of the year after reporting strong quarterly earnings, even as they acknowledge that looming inflation is weighing on commercial clients.
As executives reviewed their second-quarter results, they highlighted robust consumer and business spending as an encouraging sign for the economy. Customer credit quality is strong, they said, and the possibility of the Federal Reserve pushing interest rates higher could help boost results.