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Commercial Banking in the US - Market Research Report (2014-2029)

Demetrios Berdousis Demetrios Berdousis New York, United States Last Updated: October 2024 NAICS 52211

Revenue

$1.4tr

2024

$1.3tr

Past 5-Year Growth

Profit

$XXX.Xbn

Employees

3m

Businesses

4,867

Wages

$XXX.Xbn

Commercial Banking in the US industry analysis

The Commercial Banking industry comprises banks regulated by the Office of the Comptroller of the Currency, the Federal Reserve Board of Governors (Fed) and the Federal Deposit Insurance Corporation (FDIC). Banks generate most of their revenue through loans they originate to customers and businesses. Loans are made at various interest rates influenced by different factors, including the federal funds rate (FFR), the prime rate, debtors' creditworthiness and macroeconomic performance.

Trends and Insights

  • Exuberance in the real estate market increased revenue for Commercial Banks. Low interest rates, until recently, made it cheap and easy to buy homes.
  • The retail market increased in numbers. Intuitive smartphone apps, along with increased access to services, makes it easy for new customers.
  • Commercial Banks are in proximity to large population regions. The size of the population affects the size of the retail market.
  • The subprime mortgage crisis caused significant merger and acquisition activity. The crisis is still affecting the industry to this day.

Access hundreds of analysis and data

  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 5.6 % over the past five years, to reach an estimated $1.4tr in 2024.

Trends and Insights

The Federal Reserve cuts interest rates as inflation eases

  • The enduring supply chain complications and the worldwide energy crisis have contributed to a historical peak in inflation rates. In response to these economic concerns, the Federal Reserve took action in 2022 by increasing interest rates, a stark shift from the record-low rates established as a reaction to the pandemic.
  • Additional trends and insights available with purchase
Commercial Banking in the US
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to decline over the next five years.

Trends and Insights

The Federal Reserve will continue to cut interest rates as inflation has eased

  • As inflation has eased in the latter part of the current period, the FED is anticipated to cut interest rates further in the outlook period in an effort to stimulate the economy.

Biggest companies in the Commercial Banking in the US

Company
Market Share (%)
2023
Revenue ($m)
2023
Profit ($m)
2023
Profit Margin (%)
2023
Citigroup inc.
90,155.5
25,485.0
28.3
Jpmorgan Chase & Co
66,792.5
26,028.6
39.0
Wells Fargo & Company
53,284.7
16,212.9
30.4

To view the market share and analysis for all 12 top companies in this industry, view purchase options.

Products & Services Segmentation

Commercial Banking in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Depository services and other noninterest-income generating products, Real estate loans and Loans to individuals excluding credit cards. Depository services and other noninterest-income generating products is the largest segment of the Commercial Banking in the US.

Trends and Insights

Real estate loans are being affected by interest rate hikes

  • This category includes all mortgage products for retail consumers, including loans secured by refinancing activity and lease financing and receivables.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The Commercial Banking industry comprises banks 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. Banks in this industry are regulated by the Office of the Comptroller of the Currency.

What's included in this industry?

Receiving deposits from customersIssuing consumer, commercial and industrial loans

Companies

Citigroup inc.Jpmorgan Chase & CoWells Fargo & Company

Purchase this report to view all 12 major companies in this industry.

Related Terms

LOAN AND LEASE LOSS PROVISIONWRITE-DOWNWARRANTSUBPRIME MORTGAGELOAN DEFAULTGENERATION Y

Industry Code

NAICS 2017

NAICS 52211 - Commercial Banking in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Exuberance in the real estate market increased revenue for Commercial Banks. Low interest rates, until recently, made it cheap and easy to buy homes.

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The retail market increased in numbers. Intuitive smartphone apps, along with increased access to services, makes it easy for new customers.

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Commercial Banks are in proximity to large population regions. The size of the population affects the size of the retail market.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each state in 2024
  • Number and share of revenue each state accounts for in 2024
  • Number and share of wages each state accounts for in 2024
  • Number and share of employees in each state in 2024

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The subprime mortgage crisis caused significant merger and acquisition activity. The crisis is still affecting the industry to this day.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Major companies are adapting to higher interest rates and less liquidity. After nearly 15 years of quantities easing, the Federal Reserve is reducing its balance sheet to hel...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Citigroup inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Jpmorgan Chase & Co's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Wells Fargo & Company's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 9 additional companies

Detailed analysis

  • Description and key data for Citigroup inc., and factors influencing its performance in the industry
  • Description and key data for Jpmorgan Chase & Co, and factors influencing its performance in the industry
  • Description and key data for Wells Fargo & Company, and factors influencing its performance in the industry
  • Description, key data and performance trends for 9 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Regulation is still heavily influenced by both the Great Depression and Great Recession. The government wants to ensure economic crises don’t arise again.

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Banks reduced loan loss reserves due to the stimulus checks and low interest rates in response to the COVID-19 pandemic. Lower loan loss reserves led to higher profit.

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Industry Multiples (2017-2022)
  • Industry Tax Structure (2017-2022)
  • Income Statement (2017-2022)
  • Balance Sheet (2017-2022)
  • Liquidity Ratios (2017-2022)
  • Coverage Ratios (2017-2022)
  • Leverage Ratios  (2017-2022)
  • Operating Ratios (2017-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Commercial Banking in the US industry in United States in 2024?

The market size of the Commercial Banking in the US industry in United States is $1.4tr in 2024.

How many businesses are there in the Commercial Banking in the US industry in 2024?

There are 4,867 businesses in the Commercial Banking in the US industry in United States, which has grown at a CAGR of 0.6 % between 2019 and 2024.

Has the Commercial Banking in the US industry in United States grown or declined over the past 5 years?

The market size of the Commercial Banking in the US industry in United States has been growing at a CAGR of 5.6 % between 2019 and 2024.

What is the forecast growth of the Commercial Banking in the US industry in United States over the next 5 years?

Over the next five years, the Commercial Banking in the US industry in United States is expected to decline.

What are the biggest companies in the Commercial Banking in the US market in United States?

The biggest companies operating in the Commercial Banking market in United States are Citigroup inc., Jpmorgan Chase & Co and Wells Fargo & Company

What does the Commercial Banking in the US in United States include?

Receiving deposits from customers and Issuing consumer, commercial and industrial loans are part of the Commercial Banking in the US industry.

Which companies have the highest market share in the Commercial Banking in the US in United States?

The company holding the most market share in United States is Citigroup inc..

How competitive is the Commercial Banking in the US industry in United States?

The level of competition is high and increasing in the Commercial Banking in the US industry in United States.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Savings Banks & Thrifts in the US
  • Industrial Banks in the US
  • Credit Card Issuing in the US
  • Auto Leasing, Loans & Sales Financing in the US
  • Loan Brokers in the US

Complementors

  • Credit Unions in the US
  • Real Estate Loans & Collateralized Debt in the US

International industries

  • Global Commercial Banks
  • Commercial Banking in Canada
  • National and Regional Commercial Banks in Australia
  • Foreign Banks in Australia
  • Banking in New Zealand

View all industries in United States

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the US include: 

  • US Census Bureau
  • US Bureau of Labor Statistics
  • US International Trade Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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