Increased demand from borrowers in the fourth quarter bolstered U.S. banking companies’ profits, indicating a strong economy and promising future revenues.

On Wednesday, Bank of America (BAC.N) announced an 8% increase in average loans and a record $15.9 billion in net interest income, the difference between loan earnings and deposit payments.

Average loans rose 9% at competitor JPMorgan Chase (JPM.N). Investors watch loan growth as an indication of bank health and economic prosperity.

According to Citigroup (C.N), opens new tab average loans rose 7% in the fourth quarter due to its markets, U.S. personal banking, and services businesses.
“We saw the pace of loan growth pick up for the first time in a while,” Wells Fargo (WFC.N) CFO Mike Santomassimo told reporters on a conference call. The fourth quarter saw a 12% increase in commercial loans and revenue from vehicle and card lending.