Loan star: Improving economy and access to credit to foster revenue growth
Commercial Banking in Texas
The Commercial Banking industry in Texas, the fourth-largest state in the industry in terms of revenue, has experienced modest growth over the past five years as the state's economy has grown, and demand for financial services has increased. Over the five years to 2017, the industry benefited from improving disposable income levels and increased access to credit, raising the number of loans procured across the state, while the operators also continued to increase revenue from noninterest income. While federal funds rates are expected to rise more frequently over the next five years, they will still remain relatively low, and thus, demand for loans in Texas is expected to remain strong. As a result, operators will amass more interest income from loan agreements over the five years to 2022, contributing to faster revenue growth.
This industry comprises commercial banks in Texas that provide financial services to retail and business clients in the form of commercial, industrial and consumer loans. Banks accept deposits from customers, which are used as sources of funding for loans. Operators receive charters from either the Office of the Comptroller of the Currency or the Texas Department of Banking. Banks are also insured by the Federal Deposit Insurance Corporation (FDIC).
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- JPMorgan Chase & Co.
- Wells Fargo & Company
- Bank of America Corporation
- BBVA Compass Bancshares Inc.
Methodology
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