US regional banks join bigger peers in signaling resilient economy as lending holds firm
XLF•US regional banks reported strong third-quarter earnings as business loan demand held firm, echoing higher loan balances at the largest banks. PNC led regional bank loan growth at 14.2%, followed by U.S. Bancorp at 8%, M&T Bank at 5.5% and Citizens Financial at 5.29%.
1. Loan demand remains firm
Regional banks reported strong third-quarter earnings this week, powered by business loan demand, while JPMorgan Chase, Bank of America, Wells Fargo and Citigroup also reported higher loan balances. PNC CEO William Demchak said the economy remained strong despite uncertainty, and PNC led regional bank loan growth at 14.2%, ahead of U.S. Bancorp at 8%, M&T Bank at 5.5% and Citizens Financial at 5.29%.
2. AI spending in focus
Executives said they were assessing how much loan growth was tied to AI-related spending. Citizens Financial CEO Bruce Van Saun described the AI build-out as a strong dynamic, while PNC said AI spending could also affect sectors such as heavy equipment, transportation and energy. U.S. Bancorp CFO John Stern said loan growth was robust outside AI-adjacent sectors, including retail, food and beverage, and insurance.
