The first quarter earnings reports from major banks indicate a rise in lending, suggesting improved confidence among businesses and consumers regarding the economy. Goldman Sachs, Citibank, and Bank of America reported significant increases in their loan balances. Goldman Sachs highlighted $210 billion in loans, up from $196 billion in the previous quarter. Bank of America reported $1.1 trillion in loans, marking a nearly 6% year-over-year increase across consumer and commercial lending. Citibank also saw a 4% rise in loans to $702 billion. Importantly, banks are not overly concerned about loan defaults, with some lowering their credit loss provisions. However, Citigroup's credit loss allowance rose slightly, indicating mixed perceptions of risk. The increase in lending reflects consumer and business health, although caution is advised as higher defaults could follow any escalating economic distress. As earnings season progresses, scrutiny on cost accruals will provide insight into corporate profitability and management confidence.

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