Skip to content

Big Banks Poised to Show Return of Long-Elusive Loan Growth

  • Federal Reserve data suggest some improvement in demand
  • JPMorgan to kick off top banks’ earnings reports on Friday
Video player cover image
Big Banks Expected to Post Higher Profits in Q4
Updated on

The loan growth that eluded large U.S. banks for most of last year is expected to finally make an appearance as lenders begin to report results Friday, in a sign the economy is making more progress in recovering from the pandemic.

Federal Reserve data compiled by Bloomberg show that loans at the 25 largest banks were 3.5% higher at the end of December than they were a year earlier. That’s clear improvement from the end of the third quarter, when the same comparison was flat. Still, the highly contagious omicron variant of Covid-19 has taken hold in recent weeks, with the potential to undo those gains.