Apr
28

Big Banks Profits Slow: Capital One, US Bancorp, Wells Fargo Shine

David Banking, Markets 2012-04-28

Only 3 of the 10 Largest USA Banks reported gains in net income from the prior year Q1 2011. The other 7 reported year over year decreases. Shining were Capital One (+38%), U.S. Bancorp (+28%), and Wells Fargo (+13%). Near break-even with small YoY decreases were Citigroup (-2%), PNC Financial (-2.5%), JPMorgan (-3%), and BNY Mellon (-6%). Those dropping more significantly were Goldman Sachs (-23%), and Bank of America (-68%). Last-place was Morgan Stanley (-110%), reporting the only quarterly loss at -$94 million.

Sequential quarterly net income results, the change from the prior quarter Q4 2011, were much better. 8 of the 10 Largest USA Banks reported increases with Capital One, Citigroup, and Goldman Sachs at  the top with +245%, +207%, and 108%, respectively. Next were PNC Financial (+65%), Morgan Stanley (+62%), JPMorgan (+44%), and BNY Mellon (+32%). Near break-even were Wells Fargo at +3% and U.S. Bancorp at -1%. Bank of America trailed with a -67% decrease in quarterly net income.

Largest USA Banks Ratings: U.S. Bancorp Tops, Goldman Sachs Last

$XLF $USB $PNC $WFC $BK $BAC $JPM $C $MS $GS $COF

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Address: http://ospreyflyer.com/big-banks-profits-slow-capital-one-us-bancorp-wells-fargo-shine/
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  • http://www.manhattancalumet.com/ Penny Stock Investing

     Im sure theirs some banking stocks that will do well over time. Maybe some of the banking stocks above are really great values at currents .That being said.I just cannot bring myself to invest in financial stocks. Although their are some banking stocks like the ones covered in the post that are most likley decent companies. The terrible record of financial stocks is only surpassed by the record of airline stocks. Many of the nations money center banks were insolvent throughout the nineteen eighties and nineteen nineties keep afloat only because of assistence from the federal reserve. And two thirds of the savings and loans were either shut down by the government or taken over by the government. And just recently look at what happened to many of the nations large money center banks during the financial meltdown in 2008 and 2009. Do I need to say anymore to make my case. I believe that most banks at some point get carried away and invest in risky adventures this is what leads to their failor in the end. Their is so much leverage involved in the companies in the financial sector that I would rather avoid these type of stocks altogether.

    • ospreyflyer1

      After analyzing the largest banks financial statements this last quarter, I have the funny feeling lending is about maxed out for most. We’ll see…

      • ospreyflyer1

        I was trying to make that clear by prefacing with “calendar”, instead of “fiscal”. I was probably somewhat confusing…