US Bank Loan Growth Hits 3-Year High in Q2 2025

US banks have reported a 3-year high in aggregate loan growth in Q2 2025. The strong growth is a recurring theme throughout the US banking industry's earnings season, with total loans and leases on an aggregate basis increasing.

US banks have reported a 3-year high in aggregate loan growth in Q2 2025, marking a strong and better-than-expected performance throughout the US banking industry's earnings season. According to S&P Global Market Intelligence data, total loans and leases on an aggregate basis for US commercial banks, savings banks, and savings and loan associations reached $13.050 trillion as of June 30, up $263.05 billion from March 31 [1].

The sequential growth rate of 2.1% in the second quarter was 1.6 percentage points higher than in the first quarter, representing the fastest growth since the second quarter of 2022. JPMorgan Chase Bank NA, the largest bank in the US with 15.2% of the industry's total assets, represented 22.7% of the total loan growth. On a median basis, second-quarter loan growth was 1.7%, up from 0.6% sequentially and unchanged year over year [1].

A significant driver of this growth was loans to nondepository financial institutions (NDFIs), which increased by $114.77 billion, or 9.1%, quarter over quarter, comprising about 44% of the aggregate growth in total loans and leases. PNC Bank NA contributed $33.49 billion of the total NDFI growth, more than doubling its balance of loans to NDFIs to $62.47 billion [1].

U.S. Bancorp also reported strong performance, with total commercial growth of 2.3% to $147.42 billion, while JPMorgan Chase led the industry in loans to NDFIs, with a balance of $205.84 billion, up 8.5% quarter over quarter [1].

Despite the robust loan growth, total deposit growth experienced a slowdown, with the median change declining to 0.1% from 1.6% and the aggregate growth falling to 1.0% from 1.3%. Meanwhile, total borrowings were unchanged on a median basis but up 9.3% in aggregate. Net interest margin also showed divergence, with the aggregate increasing by 1 basis point to 3.20% while the median increased by 15 basis points to 3.66% quarter over quarter [1].

X Financial (NYSE: XYF), a leading Chinese fintech platform, also reported strong results for Q2 2025, with total net revenue reaching $317.3 million, up 65.6% year-over-year, and total loan amount facilitated and originated hitting a record RMB38.99 billion, up 71.4% YoY. The company's delinquency rates decreased, indicating improved asset quality [2].

These results highlight the resilience and growth potential of the US banking industry and the Chinese fintech sector, with both experiencing significant advancements in loan growth and asset quality.

References:
[1] https://www.spglobal.com/market-intelligence/en/news-insights/articles/2025/8/aggregate-loan-growth-at-us-banks-shoots-to-a-3year-high-in-q2-2025-91975014
[2] https://www.morningstar.com/news/pr-newswire/20250818cn53057/x-financial-nyse-xyf-reports-q2-2025-results-revenue-66-record-loan-originations-improved-asset-quality