The Top 10 Largest USA Banks reported first quarter 2012 financial results in April and the market cap was then reviewed as of market close on 4-20-12. Benjamin Graham said, “In the short run, the market is a voting machine but in the long run it is a weighing machine.” How has the market voted and weighed since? The answer has been bad news, then more bad news.
Of course, JPMorgan has since suffered a minimum $2 billion in trading losses, which were reported in a previous post, Too Big To Fail: JPMorgan Rolls the Dice, Loses $2 Billion. This loss could now be as high as $3 billion. As expected, JPMorgan hasn’t fared well in market capitalization, down a staggering -$35 billion and -22% since last reviewed.
JPM is still #2 in market cap as seen on the chart below as all the Big Banks decreased from both the JPMorgan news and overall market downdraft. In fact all major banks worldwide have decreased in market cap since 4-20-12! Undoubtedly the EU sovereign debt crisis is leaving no major bank unscathed as financial system uncertainty is elevated.
The market valuation below is as of the market close on 5-18-12 and provides a snapshot of value. All prior and expected financial performance and position has been priced into these publicly traded stocks, along with any other financial system, economic, and political uncertainties to-date.
Wells Fargo continues to lead all USA and worldwide banks with a market capitalization of $163 billion. JPMorgan Chase at $128 billion is 2nd. Citigroup and Bank of America are a distant #3 and #4 at $76.23 billion and $75.62 billion, respectively.
Even further back are #5 U.S. Bancorp ($58 billion) and #6 Goldman Sachs ($47 billion).
Both #7 PNC Financial Services ($32.36 billion) and #8 Capital One at ($28.50 billion) have jumped ahead of struggling #9 Morgan Stanley at $26.41 billion. Uncertainty surrounds Morgan Stanley due to derivative holdings and trading. BNY Mellon continues last and #10 at $24.38 billion.
The current aggregate market capitalization of these 10 Largest USA Banks is $660 billion, a decrease of -$108 billion and -14% since last reviewed at the 4-20-12 market close.
By percentage and dollar change, the market cap losses from 4-20-12 to 5-18-12 were:
Morgan Stanley -23.65%, -$8 billion
Citigroup -23.25%, -$23 billion
JPMorgan -21.61%, -$35 billion
Goldman Sachs -15.08%, -$8 billion
Bank of America -14.15%, -$12 billion
BNY Mellon -11.44%, -$3 billion
Capital One -8.77%, -$3 billion
Wells Fargo -6.24%, -$11 billion
PNC Fin Svcs -6.18%, -$2 billion
US Bancorp -3.26%, -$2 billion
Data Source: YCharts