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Market Share of Mid-Market Commercial Lending Banks - U.S.
The estimated 2017 market share of mid-market commercial lending banks in the U.S., while not found among pre-existing statistics, may be triangulated based on the commercial lending activity of the nation's top 5 largest banks. Per the National Center for the Middle Market, we have defined the middle market as consisting of the "U.S. companies having annual revenues from $10 million to $1 billion." The largest of those banks, Bank of America, lent about 1.02% of the total loans in all US based banks to mid-market commercial borrowers by 3rd quarters end in 2017. Assuming that there is no change, based on the current rate of growth, commercial lending should grow from $902 Billion to $1,081.68 Billion in about 5 years. Below you will find our deep dive into how we came to these conclusions, as well as the estimated market shares of the other 4 leading US banks.
Top 5 commercial Lending banks
The top 5 commercial lending banks are Bank of America, Wells Fargo, JP Morgan Chase, Citigroup, and US Bancorp. The mid-share commercial lending market shares of these banks are $96.66, $68.66, $53.66, $52.99 in Billions, respectively. About 40% of all outstanding loans across U.S. commercial banks is represented by these banks. In order to highlight the commercial area of lending we focused on the statistics of the loans based on loan category. Focusing on the commercial loans of the banks, we were able to triangulate the mid-market shares based on the fact that the middle market makes up about 1/3 or 33.3% of the private sector. The total loans in all US based banks for 3rd Quarter 2017 were derived from the 3rd quarter 2016 plus the YoY growth of 4.9%. {Q3 2016 = $ 9,017 billion
YoY Growth = 4.9%; Q3 2017 = $9,017 billion + 4.9% = $9,458.83 billion (total loans in all U.S. based banks)}
Using this figure, total commercial loans of the top 5 banks which is equal to $902 billion is 9.54% of the total loans in all US based banks. {Total loans = $ 9,458.83 billion, Commercial loans = $ 902 billion
( $902 / $ 9,458.83) * 100 = 9.54 % (percentage of commercial loans vs total loans)}
Figures from two different Forbes articles show total loans and total commercial loans, regardless of their market group (small market, middle market, etc.). In order to get how much of the commercial loans is for mid-market group, we relied on data from Merrillcorp. Here mid-market was identified as 1/3, or 33.33%, of all the market groups. To get the amount of commercial loans of the top 5 largest bank in the U.S, I multiplied the amount of each bank’s Q3 2017 loan to 33.33%.
Additionally, to get the market growth in this area in the next 3-5 years, we used the percentage of growth of these banks according to Forbes which is 3.7% assuming that there is no change.
2018 = $ 935.37 billion
2019 = $ 969.98 billion
2020 = $ 1,005.87 billion
2021 = $ 1,043.09 billion
2022 = $ 1,081.68 billion
Conclusion
The market shares of the top 5 mid-market commercial lending banks in the U.S. are $96.66, $68.66, $53.66, $52.99, and $29.00 1.02%, 0.73%, 0.57%, 0.56%, and 0.31% for Bank of America, Wells Fargo, JP Morgan Chase, Citigroup, and US Bancorp, respectively. The market is expected to grow within the next 5 years.