US BANCORP and PNC FINANCIAL SERVICES GROUP reported broad second-quarter gains as a lending rebound and fee income offset geopolitical concerns. Regional lenders in the United States saw average loan growth reach 7% year-on-year, signaling a stabilization in commercial and personal credit demand. The results suggest corporate clients are moving forward with investment plans despite an uncertain macro environment and previous tariff-related pauses.
Lending Rebound Across Sectors
Lending activity accelerated during the first half of 2026, driven by steady hiring and resilient consumer spending. US Bancorp reported 7% growth in average loans, while CITIZENS FINANCIAL GROUP and REGIONS FINANCIAL CORP
saw increases of 5% and 3% respectively. Executives noted that borrowers are no longer waiting for lower interest rates to fund operations.
“We are seeing a capitulation and this sense that you cannot wait for lower rates any longer, or you cannot wait for perfect stability,” FIFTH THIRD BANCORP CFO Bryan Preston said.
While technology firms are borrowing heavily to fund artificial intelligence infrastructure, bank leaders emphasized that growth is broad-based. US Bancorp finance chief John Stern cited increased demand across food and beverage, media, and power sectors. Additionally, credit facilities for private credit funds and business development companies have emerged as a primary growth driver.
Capital Markets and Advisory Fees
A resurgence in dealmaking and IPO activity fueled a 55% average surge in capital markets revenue across six major regional lenders. PNC Financial recorded the strongest percentage growth in this category as regional players expand their Wall Street operations. These banks are increasingly competing for middle-market advisory roles previously dominated by larger global institutions.
Strategic acquisitions are further bolstering these long-term growth prospects. US Bancorp recently acquired BTIG, while Citizens Financial and Regions Financial completed deals for Matrix Capital Markets Group and The Frazer Lanier Company.
Citizens head of commercial banking Theodore Swimmer said M&A pipelines show upside potential if market conditions remain favorable through the second half of the year.
Deposit Competition and Profitability
Net interest margins grew across the industry during the second quarter, though analysts are monitoring potential pressure from deposit costs. As loan growth accelerates, banks may need to increase deposit rates to attract necessary funding.
Citizens Financial CEO Bruce Van Saun said that while deposit competition increased slightly, the trend remains manageable and is expected to stabilize.
The U.S. will release weekly jobless claims data on July 23.
