Interest revenue growth will outpace noninterest
revenue
CLEVELAND, Sept. 28,
2022 /PRNewswire/ -- US commercial bank revenue is
forecast to grow 5.8% annually in nominal dollars through 2026,
according to Commercial Banking: United States, a report recently released
by Freedonia Focus Reports. Banks will benefit from growth in
economic activity and advances in consumer and business incomes to
2026. Gains in interest revenue are projected to outpace
noninterest revenue due to rising interest rates as the Federal
Reserve attempts to tackle the high inflation experienced in 2021
and 2022. In addition, higher inflation rates will increase the
nominal value of loans sought and interest payments. However,
inflation over the forecast period will reduce the value of loans
and leases already held by banks.
Commercial bank assets are forecast to expand 5.0% annually to
2026. Advances will be driven by projected increases in loans and
leases in addition to inflation pushing up asset values. The
expected rise in interest rates will help generate higher returns
on bank assets and contribute to growth.
The value of gross loans and leases is projected to rise 5.8%
per year to 2026. Demand for loans and leases is expected to
benefit from projected growth in GDP to 2026, despite declines in
GDP in the early forecast period. In particular, issuers of real
estate loans are projected to benefit from the continued growth
forecast for residential and nonresidential investment in
structures. Lending to the commercial and industrial sector is
expected to advance based on rising equipment investment as
manufacturing output continues to expand. Increases in disposable
personal income will bolster personal spending and drive demand for
consumer financing. Inflation during the forecast period will also
add to growth in the value of gross loans and leases.
These and other key insights are featured in Commercial
Banking: United States.
This report forecasts to 2022 and 2026 the following measures of
the US commercial banking industry in nominal US dollars:
- interest revenue
- noninterest revenue (e.g., fees)
- net loan and lease charge-offs
- net income
- assets
- gross loans and leases
- deposits
In addition, credit union revenue is forecast in nominal US
dollars to 2026.
To illustrate historical trends, the measures of commercial
banking noted above and credit union revenue, as well as the number
of respective firms, establishments, and employees, are provided in
annual series from 2011 to 2021. In addition, segmentation for
commercial bank assets, gross loans and leases, and deposits is
provided in annual series from 2011 to 2021.
The scope of this report covers the commercial banks, the
commercial banking subsidiaries of bank or financial holding
companies, and the savings institutions (also known as savings and
loans, or thrifts) that are insured by the Federal Deposit
Insurance Corporation (FDIC). Credit unions are not insured by the
FDIC and are excluded from commercial banking figures, but a
separate overview is provided in the report.
Financial institutions that offer commercial banking, investment
banking, and insurance services are typically chartered as bank
holding companies. The asset management and investment banking
subsidiaries of bank holding companies are excluded from the scope
of this report. In addition, stand-alone investment banks,
insurance underwriters, mutual funds, and other investment entities
or securities brokers are excluded.
More information about the report is available at:
https://www.freedoniafocusreports.com/Commercial-Banking-United-States-FF95010/?progid=91541
About Freedonia Focus Reports
Each month, The
Freedonia Group – a division of MarketResearch.com – publishes over
20 new or updated Freedonia Focus Reports, providing fresh,
unbiased analysis on a wide variety of markets and industries.
Published in 20-30 pages, Focus Report coverage ranges from raw
materials to finished manufactured goods and related services such
as freight and construction. Additional Services & Industries
reports can be purchased at Freedonia Focus Reports or
MarketResearch.com.
Analysis is intended to guide the busy reader through pertinent
topics in rapid succession, including:
- total historical market size and industry output
- segmentation by products and markets
- identification of market drivers, constraints, and key
indicators
- segment-by-segment outlook in five-year forecasts
- a survey of the supply base
- suggested resources for further study
Press Contact:
Corinne
Gangloff
+1 440.842.2400
cgangloff@freedoniagroup.com
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SOURCE The Freedonia Group