BREAKINGVIEWS-Lending boom raises economic hopes and bank fears
The four largest US banks increased their loan books by $385 billion, or nearly 10%, in 2025, despite concerns over a slowing economy. This growth comes as Bank of America, Citigroup, and Wells Fargo reported better-than-expected fourth-quarter earnings, with Citigroup leading at 24% year-over-year growth. However, the rise in lending also raises concerns about new financial risks as regulatory oversight diminishes.
(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.)
By Stephen Gandel
NEW YORK, Jan 14 (Reuters Breakingviews) - The four largest US lenders grew their loan books by $385 bln, or nearly 10%, in 2025. The biggest jump in years, it defies worries over a flagging economy or rising rivals. Yet signs of increasing financial complexity as regulators recede point to new, hard-to-gauge risks.
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CONTEXT NEWS
Bank of America, Citigroup and Wells Fargo all reported better-than-expected earnings in their fourth quarter on January 14, according to analyst estimates compiled by Visible Alpha. Citi recorded the fastest pace of earnings growth of the group, at 24% year-over-year. Wells Fargo and Bank of America notched 14% and 13%, respectively. (Editing by Jonathan Guilford; Production by Maya Nandhini)
