According to a recent report, America’s largest banks face a rise in the number of delinquent loan payments.
S&P Global reports that the US banks’ delinquencies on commercial and industrial loans rose in the fourth quarter of 2024, while the value of these loans decreased.
Delinquent C&I Loans grew by 6.4% in the last quarter, and 198% over the past year. They now total $31.04 Billion with a 1.31 % delinquency rate.
The number of sour C&I loan defaults has increased significantly. Major players such as JPMorgan Chase and Bank of America are now saddled collectively with delinquent C&I debts totaling $11.8582 Billion.
Overall C&I loans across US banks dropped 5.2% quarterly and 4.3% annually to $2.371 billion, partly due to the classification change that excluded margin loans from C&I.
Bank executives noted a tempered lending demand, as well as cautious borrowing behavior, despite the decrease in total loan volume.
JPMorgan Chase COO Jennifer Piepszak said that much of recent activity was refinancing, rather than new loans growth. She attributed it to businesses’ “wait and see” attitude.
John Stern, CFO of U.S. Bancorp, has pointed out “pockets” of growth in middle and corporate lending, but stressed that the growth is inconsistent. He added, however, that the growth could become more consistent in the second part of the year, when the economy may be clearer.
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The report may change as new information becomes available.
