🧵 1. Big banks' earnings boosted by loan growth as applications decline. JPMorgan Chase loans up 13%, Bank of America loans rise by $17B, Wells Fargo loans increase by 2.1%. #finance
🧵 1. Big banks' earnings boosted by loan growth as applications decline. JPMorgan Chase loans up 13%, Bank of America loans rise by $17B, Wells Fargo loans increase by 2.1%. #finance
🧵 2. While US banks report rising loans, nationwide credit landscape shows decline in commercial and industrial loans. Divide seen between big banks and community/regional banks.
🧵 3. Loan growth weakest among banks with less than $10B in assets, decelerating to 1.3% in Q1. Small banks with under $100M assets see no growth. Interest rates rise, leading to fewer loan applications.
🧵 4. Fed rate hikes result in higher interest rates for certain loans. Mortgage rates near 7%. Credit Access Survey shows falling application rates for auto loans and credit card limits, while mortgage applications rise.
🧵 Read more at: https://www.investopedia.com/loan-growth-buoys-earnings-at-big-banks-even-as-loan-applications-decline-7562344