Regional banks are seeing a pickup in commercial and industrial lending as the artificial intelligence boom boosts activity among manufacturers, equipment suppliers, and other midsize firms. A net 16.1% of banks reported higher loan demand from large and midsize companies in the second quarter, up from 4.8% in the prior quarter, according to the Federal Reserve's senior loan officer survey. PNC CEO Bill Demchak said the bank experienced unusually broad commercial loan growth, while Fifth Third Bancorp CEO Tim Spence noted his bank lends to firms providing concrete, aluminum, HVAC, and heavy machinery that benefit from AI and defense spending. The State Street SPDR S&P Regional Banking ETF has climbed 17% year to date, outperforming major indexes. Wells Fargo analysts described the trend as a trickle-down effect of massive AI infrastructure spending, though they cautioned that higher rates and competitive pressures could limit the lending boost.
Fifth Third BancorpCEO notes lending to firms benefiting from AI and defense spending
PNC Financial Services Group IncCEO reports unusually broad commercial loan growth
Wells Fargo & Company
PNC Process Systems Co Ltd