Commercial Banks NAICS 522110

Jan 22, 2026 - Banking Giants Deliver Record 2025

• The nation’s six largest banks delivered several records in 2025, with commercial banking benefiting from a surge in corporate borrowing and deal-related lending. Collectively, JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley generated about $593 billion in revenue (up 6%) and $157 billion in profits (up 8%). Lending tied to M&As and large capital investments rebounded sharply as 2025 produced the second-highest global M&A volume on record, according to London Stock Exchange data. Industry-wide debt underwriting surpassed its 2020 peak, while loans used to finance acquisitions reached new highs, Dealogic data shows. Banks also expanded balance-sheet lending to hedge funds, private-equity firms, and corporate clients. Executives expect further loan growth in 2026 but warned that geopolitical tensions, interest-rate uncertainty, and a slowing labor market could temper momentum.
• Regional US banks are ramping up mergers and acquisitions to strengthen deposit bases and withstand mounting competition from national lenders. After a period of high interest rates and deposit outflows, many mid-sized banks are focusing on acquiring institutions with stable, low-cost retail deposits rather than relying on more volatile commercial funds. Recent deals, including Fifth Third Bancorp’s $10.9 billion offer for Comerica and PNC Financial Services’ $4.1 billion purchase of FirstBank Holding, highlight a broader effort to improve funding stability and diversify geographically. Analysts say these mergers are less about sheer scale and more about managing risk, expanding into growing markets, and building safeguards against future economic shocks. With large banks continuing to attract consumer deposits and fintech competitors encroaching on lending, regional lenders are consolidating to stay competitive, streamline operations, and maintain profitability in a tougher regulatory and credit environment.

• National banks boosted their share of the auto loan market, writing about 31% of all new vehicle loans in the first half of 2025, according to Experian. It was a 5% year-over-year increase for new cars and a 1% increase for used cars (banks wrote 28% of used vehicle loans in that period). Banks are on pace to write 29% of all US auto loans by the end of the year. Earnings reports of three large banks all show double-digit value growth in auto loans: JPMorgan Chase had a 12% increase in auto loans for H1 2025 ($22 billion); Capital One rose 26% ($20 billion); and Wells Fargo jumped 47% ($11.5 billion). Industry experts attribute the shift to falling interest rates allowing banks to cheaply borrow money to originate auto loans, which they can then offer at lower rates to consumers in an effort to be more competitive.
• While AI integration remains a top priority for the commercial banking industry, the more immediate need is investing in cybersecurity systems to combat fraud, according to the KPMG 2025 Banking Technology Survey. About 89% of surveyed bank executives cited fraud protection and security as their top investment strategies this year, while GenAI enablement fell in importance. Roughly 75% of surveyed bankers noted an increase in cyber attacks in the last year. However, when asked about priorities over a longer three year period, the numbers essentially reversed with 67% citing AI integration as most important. The main operational areas targeted for increased use of AI in the industry included online and mobile banking, and chatbots and virtual assistants to handle more customer service tasks. Key drivers cited by respondents for technological modernization in banking were regulatory compliance (83%) and operational efficiency (80%).