Top U.S. commercial banks recorded unprecedented loan volume increases in Q4 2025, fueled by the maturation of low-yielding securities and strategic reallocation of capital. The surge marks a pivotal shift in balance sheet strategy amid rising interest rate environments.
- Total bank lending in Q4 2025 reached $1.2 trillion, up 14% from Q4 2024.
- Approximately $450 billion in low-yield assets (below 2%) matured during the year.
- JPMorgan Chase, Bank of America, and Citigroup reported loan growth of $220B, $195B, and $160B, respectively.
- Average loan yields rose to 6.3% in Q4 2025, up from 5.1% in Q4 2024.
- Net interest income for top 10 U.S. banks projected to rise 9% in 2026.
- Increased lending activity is contributing to higher demand for longer-term funding.
Major U.S. banks, including JPMorgan Chase, Bank of America, and Citigroup, reported record quarterly loan growth in the final quarter of 2025, with aggregate new lending surpassing $1.2 trillion. This marks a 14% year-over-year increase, the highest level since 2019, driven by the repayment and maturity of legacy low-yield assets acquired during the prolonged low-rate era. The surge follows the steady exit of approximately $450 billion in fixed-income securities with yields below 2%, which were held on balance sheets during the 2020–2023 period. As these assets matured, banks reallocated the capital into higher-return lending activities, particularly in commercial real estate, corporate credit, and consumer financing. The shift reflects a broader strategic pivot toward earning capacity amid narrowing net interest margins. Data from regulatory filings show that JPMorgan Chase’s loan portfolio expanded by $220 billion year-over-year, Bank of America’s by $195 billion, and Citigroup’s by $160 billion. The strongest gains were in secured lending, where margins averaged 6.3% in Q4, up from 5.1% in the same quarter of 2024. These figures indicate a growing confidence in credit quality and demand for mid-to-higher risk debt instruments. The lending boom has implications for broader financial markets, including upward pressure on Treasury yields as banks increase their demand for longer-duration funding. Investors are reassessing bank profitability models, with analysts projecting a 9% average increase in net interest income for the top 10 U.S. banks in 2026. Small and mid-sized lenders are also benefiting from increased competition and capital availability.