U.S. Banks Prepare for
Lending Revival
The 1 percent increase in total second-quarter revenues at Bank of America to $22.1 billion from $21.7 billion a year ago is a sign that the banking industry still has the power to grow, says Richard Hunt, president of the Consumer Bankers Association. Years of tighter regulation and looser monetary policy have combined to squeeze income for all the big U.S. lenders, but if BofA -- which has shed more than $70 billion of assets over the past five years while winding down other lines of business -- can start to improve its top line, then the future suddenly looks brighter. "Anything north is exciting," says Hunt. Analysts say the recent earnings reports from major banking firms seem to indicate that banks are ready to respond to a revival in appetites for borrowing in households across America. Revenues in Citigroup's retail bank were up 11 percent from a year earlier, for example, driven by a 42 percent surge in mortgage originations. Wells Fargo ended the quarter with credit card balances of more than $30 billion, up 15 percent from a year earlier.
From "U.S. Banks Prepare for Lending Revival"
Financial Times (07/17/15) McLannahan, Ben
The 1 percent increase in total second-quarter revenues at Bank of America to $22.1 billion from $21.7 billion a year ago is a sign that the banking industry still has the power to grow, says Richard Hunt, president of the Consumer Bankers Association. Years of tighter regulation and looser monetary policy have combined to squeeze income for all the big U.S. lenders, but if BofA -- which has shed more than $70 billion of assets over the past five years while winding down other lines of business -- can start to improve its top line, then the future suddenly looks brighter. "Anything north is exciting," says Hunt. Analysts say the recent earnings reports from major banking firms seem to indicate that banks are ready to respond to a revival in appetites for borrowing in households across America. Revenues in Citigroup's retail bank were up 11 percent from a year earlier, for example, driven by a 42 percent surge in mortgage originations. Wells Fargo ended the quarter with credit card balances of more than $30 billion, up 15 percent from a year earlier.
From "U.S. Banks Prepare for Lending Revival"
Financial Times (07/17/15) McLannahan, Ben
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