Cleveland, OH, April 18, 2019 — US commercial bank revenue is forecast to advance 6.2% annually in nominal dollars through 2023, according to Commercial Banking: United States, a report recently released by Freedonia Focus Reports. Banks will benefit from continued growth in economic activity and advances in consumer and business incomes and borrowing. Interest revenue is forecast to increase 8.0% annually to 2023. Gains in interest revenue are projected to outpace noninterest revenue due to a higher level of prevailing interest rates compared to most of the historical period. In addition, continued gains in the outstanding value of loans and leases will support growth in interest revenues, driven by real estate purchases, business investment in equipment, and consumer spending.
These and other key insights are featured in Commercial Banking: United States. This report forecasts to 2023 the following measures of the US commercial banking industry in nominal US dollars:
- interest revenue
- noninterest revenue (e.g., fees)
- net loan and lease charge-offs
- net income
- gross loans and leases
In addition, credit union revenue is forecast in nominal US dollars to 2023.
To illustrate historical trends, the measures of commercial banking noted above and credit union revenue, as well as the number of respective firms, establishments, and employees, are provided in annual series from 2008 to 2018. In addition, segmentation for commercial bank assets, gross loans and leases, and deposits is provided in annual series from 2008 to 2018.
The scope of this report covers the commercial banks, the commercial banking subsidiaries of bank or financial holding companies, and the savings institutions (also known as savings and loans, or thrifts) that are insured by the Federal Deposit Insurance Corporation (FDIC). Credit unions are not insured by the FDIC and are excluded from commercial banking figures, but a separate overview is provided in the report.
Financial institutions that offer commercial banking, investment banking, and insurance services are typically chartered as bank holding companies. The asset management and investment banking subsidiaries of bank holding companies are excluded from the scope of this report. In addition, stand-alone investment banks, insurance underwriters, mutual funds, and other investment entities or securities brokers are excluded.
More information about the report is available at: