Large U.S. Banks Shrink Assets; Industry Cuts Wholesale Funding In Q4 2024

2025-02-15 00:30:00 ET

Summary

• In the fourth quarter of 2024, the US banking industry reported a smaller overall asset base and upgraded its funding profile.
• Total assets on an aggregate basis for US commercial banks, savings banks, and savings and loan associations, excluding non-depository trusts and companies with a foreign banking organization charter, were $24.098 trillion as of Dec. 31, 2024.
• Loan growth remained tepid in the fourth quarter of 2024, at 0.8% on an aggregate basis and 1.1% on a median basis.
• While the industry median for the ratio of net charge-offs to average loans was close to zero, the aggregate rose 4 bps during the fourth quarter of 2024 to 0.70%, which represents the peak of the last decade.

About this analysis

This analysis, which covers US commercial banks, savings banks, and savings and loan associations, examines fourth quarter 2024 financial performance based on aggregate and median change because the sector remains dominated by larger institutions that can skew the results. For instance, the four largest banks held 39% of the industry's assets at the end of 2024. ...

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