Regional Banks Gain From AI Build-Out as C&I Loan Demand Hits 16.1%
Updated
Updated · Yahoo Finance · Aug 8
Regional Banks Gain From AI Build-Out as C&I Loan Demand Hits 16.1%
3 articles · Updated · Yahoo Finance · Aug 8
Summary
A net 16.1% of banks reported stronger second-quarter demand for commercial and industrial loans from large and midsize companies, up from 4.8% in the prior quarter.
That pickup reflects heavier spending on plants, equipment and inventories as the AI infrastructure boom lifts activity among manufacturers, equipment suppliers and other borrowers outside direct data-center financing.
PNC said commercial loan growth was unusually broad across its C&I business, while Fifth Third said it is benefiting by lending to suppliers of concrete, aluminum, HVAC, machinery and other construction-related services.
Investors have pushed the KRE regional-bank ETF up 17% this year to near a record high, betting commercial lenders can capture a new growth stream from AI, defense and infrastructure spending.