Banks: H.8 Loans + Interest Rate Update (5/11)

Research evidence excerpt

Banks: H.8 Loans + Interest Rate Update (5/11)

ccording to H.8 data, is

nondepository financial institutions loans (NDFI), which is up 3.9% unann. thus far in the quarter,

following NDFI growth in 1Q25 of 5.7%. NDFI growth is up 3.7% unann. for large banks (compared

to up 5.9% in 1Q), and up 5.3% unann. for small banks (compared to 4.3% in 1Q). Consumer loan

growth is 0.5% unannualized 2QTD, following consumer growth in 1Q'25 of 0.3%, largely driven by a

0.7% increase from small banks (vs. +1.9% in 1Q'25), while large banks are trending up 0.4% unann.,

(vs. 0.0% in 1Q). C&I loan (excl. NDFI) is above consumer loan growth with data up 3.6% sequential

growth 2QTD above the 10-yr historical 2QTD of 1.6%, following C&I loan growth (excl. NDFI) in

1Q'25 of 2.4%. C&I loan growth 2QTD (excl. NDFI) is being driven by large banks (up 4.4% unann.,

compared to 3.0% in 1Q25) while small banks are up (2.0% 2QTD compared to up 1.2% in 1Q25). C&I

loan growth (incl. NDFI) is up 3.7% unnannualized 2QTD above 10-yr historical 2QTD trend of 1.8%,

driven by large banks (up 4.1% unann. compared to 4.3% in 1Q25) and small banks (up 2.7% 2QTD

compared to up 1.8% in 1Q25). Residential real estate loans are seeing a decrease 2QTD, which

are down 0.2% unann. thus far in the quarter, following resi growth in 1Q'25 of 0.1%. Resi growth

is down 0.5% sequentially for large banks (compared to down 0.2% in 1Q), and small banks are up David Chiaverini, CFA * | Equity Analyst

0.2% unann. (compared to 0.6% in 1Q). CRE loan growth has been positive, with data showing an +1 (212) 778-8554 | dchiaverini@jefferies.com

increase of 0.4%, but below the 10-yr historical 2QTD increase of 0.8%, following CRE loan growth in Daniel T. Fannon * | Equity Analyst

1Q25 of 0.7%.