Trefis Team
,
Contributor
Citigroup
reported an increase in its total loan portfolio from $623 billion in
Q1 2017 to $668 billion in Q1 2018 – a jump of 7.2%. This compares with
the average loan growth figure of 4.7% across the U.S. banking industry
over this period. With the Fed’s ongoing rate hike process putting
pressure on commercial as well as mortgage lending over recent quarters,
most U.S. banks have had to contend with lukewarm loan growth. However,
Citigroup’s geographically diversified business model helped it buck
this trend, as the banking giant gained in particular from its strong
presence in key developing nations.
Notably, the 5 largest U.S. banks reported a combined loan portfolio
of nearly $3.8 trillion worldwide in Q1 2018. This represents nearly 40%
of the total loans handed out by all U.S. commercial banks. However,
this proportion has gradually nudged lower over recent quarters –
primarily because of Wells Fargo’s shrinking loan portfolio.<script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
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We capture the trends in loans and deposits for each of the five largest commercial banks in the country – JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, U.S. Bancorp – through interactive dashboards, while also detailing the impact of changes in these key factors on their valuations.
The figures above represent average loans for each bank over the last five quarters as detailed in their latest SEC filings. The total loans for all U.S.-based commercial banks is derived from data compiled by BankRegData.com using quarterly call reports filed by all U.S. banks.
As seen here, the loan portfolio for the five largest U.S. banks has grown by just 2.5% over the last five quarters. Given Citigroup’s strong showing over recent quarters, the subpar combined growth figure for these banks is primarily due to the sequential decline in Wells Fargo’s loan portfolio over the last twelve months. While poor activity levels in Wells Fargo’s core mortgage business are partly to blame, the bank has also been hurt by the Fed’s restriction on growing its balance sheet.
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