U.S. Bank CEOs Confidence in Deals and Consumer Financing Rises

At a sector conference held in New York, U.S. bank CEOs expressed optimism about the potential for deals and the financial health of American consumers. CEO Brian Moynihan shared with attendees that Bank of America's consulting activities related to upcoming mergers and acquisitions are strong, and that pipelines for initial public offerings are "full and ready to go."

KeyCorp CEO Christopher Gorman noted that consumers have 30% more money in their bank accounts today compared to pre-pandemic levels, signaling that "the economy is in good shape." U.S. banks are expecting an increase in demand from borrowers as the new Trump administration is preparing to take office and interest rates are declining.

Gorman remarked, "We haven't seen much demand for credit, and I think we will now start to see the beginning of that." According to a Fed survey conducted in August, demand for commercial and industrial loans remained flat in the second quarter and stabilized after a two-year decline.

JPMorgan (NYSE:JPM) analyst Anthony Elian stated in a report released last week, "We expect a business-friendly and onshoring stance to lead to an increase in credit activity, which will help revitalize credit growth across the sector."