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US mid-sized banks ride industry upswing on robust fee income

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This Tech Company Grew 32,481%...

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FEATURED ARTICLE

US mid-sized banks ride industry upswing on robust fee income

A raft of U.S. banks reported higher fourth-quarter profits on Friday, extending a winning streak for the industry as an upswing in capital markets alleviated a hit from weaker loan demand.

Long believed to be the stronghold of Wall Street heavy hitters such as JPMorgan Chase and Goldman Sachs, investment banking and trading have become increasingly vital for mid-sized banks as a robust dealmaking environment offers lucrative fee prospects.

“Dealmaking is back with a vengeance,” said Danni Hewson, head of financial analysis at AJ Bell.

The boost from investment banking has helped mid-sized banks cushion the blow from lower loan demand as elevated interest rates deter borrowers.

“If the incoming president follows through on promises for deregulation and lower taxes, the outlook for 2025 will continue to generate a lot of excitement among banking bosses,” Hewson said.

Citizens Financial, Truist Financial, Huntington Bancshares and Regions Financial all surpassed expectations for quarterly profits

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