(Bloomberg) -- A key measure of JPMorgan Chase & Co.'s lending declined during every quarter in 2020 as the nation's largest bank showed less and less appetite for extending credit in a battered economy.
The fourth-quarter loans-to-deposits ratio dipped to 47% from 64% a year ago, JPMorgan said Friday. Loans increased by 2% to just over $1 trillion.
If JPMorgan extended credit at the same rate as the entire U.S. banking industry -- 64% as of Dec. 30 -- it would have about another $368 billion of loans on its books. The bank has experienced lower demand for loans, Chief Financial Officer Jennifer Piepszak told analysts Friday.
Read more: JPMorgan's Record Profit Comes With Warning That Risk Isn't Gone
The gap comes as customers have flooded JPMorgan with deposits, taking it past the $2 trillion mark with a 37% rise from a year earlier. JPMorgan isn't the only lender reporting a dip in loans relative to its ability to provide them, but its drop has been steeper, and its ratio is well below that of big-bank peers that have reported fourth-quarter results.
Wells Fargo & Co. lends out the equivalent of 63 cents for every $1 of deposits, down 10 percentage points from a year earlier. At Citigroup, where most deposits are outside the U.S., the ratio is 53%, down 12 percentage points from year-end 2019.
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