The second quarter saw large U.S. banks reporting strong growth in business loans.
“The economy is obviously strengthening,” said Gerard Cassidy, a banking analyst with RBC Capital Markets, reports The Wall Street Journal.
Particular areas of strength were in industrial and commercial sector loans—as is an increasing use of revolving credit lines, as both are indicators of increased confidence and expansion about business.
The signs of strength have been a repeating feature of quarterly earnings reports issued by the nation’s big lenders this week. JP Morgan Chase& Co. noted that business were more willing borrow is revolving credit lines. Bank of American reported a similar result, as well as the fact that average commercial loan and lease balances rose 6 percent.
That is “is usually a pretty good measure of companies starting to expand,” said Jamie Dimon, chief executive officer, during a conference call with analysts.
Citigroup Inc. noted that lending for trade and for financing mergers was up and recorded a 9 percent increase in corporate loans.
Commercial and industrial loans were up 10 percent at Wells Fargo, and John Stumpf, Wells Fargo WFC’s chairman and CEO noted a better mood among the banks customer base.
“As I’m out talking with customers…there is more optimism,” he said.
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