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Big Banks = Big Bucks

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February 24, 2011 – Comments (5)

The latest FDIC Quarterly Banking Profile shows quite a difference between big bank and small bank earnings.  You might expect that, as a group, banks with over $10 billion in assests would make the lion's share of bank earnings.  But, would you believe 95% of all bank profits in the US?  And the ROA and ROE numbers show the big banks dramatically outperforming small banks.

My favorite stat?  Just one bank, JPM, was responsible for more than one out of every five dollars earned by US banks in the last quarter of last year.

Here's the rest of the story

Fool On!

Russ

5 Comments – Post Your Own

#1) On February 24, 2011 at 11:15 PM, checklist34 (99.72) wrote:

holy thats wild about JPM...

i sold my WFC last week after reading a few 1/4rly reports that showed an asset of theirs AND the hedges on it both making money a few quarters.  I couldn't make peace with that and sold out.

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#2) On February 24, 2011 at 11:15 PM, checklist34 (99.72) wrote:

rec

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#3) On February 25, 2011 at 12:57 AM, Valyooo (99.52) wrote:

Checklist,

conversley, you could think "man, these guys make money in every way possible, I should buy more"

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#4) On February 25, 2011 at 8:06 PM, rd80 (98.24) wrote:

Thanks for the comments.

I'm still a WFC shareholder.  Although, the stock looks a little pricey compared to the rest of the group and I'm a little concerned about the CFO bailing out. 

I triple-checked the math on the JPM stat and thought I must have missed something every time.

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#5) On February 25, 2011 at 9:37 PM, ChrisGraley (29.92) wrote:

I used to have such a high viewpoint of JPM and Dimon in particular, but the more that I read about how that money is made the more I see JPM as the next GS.

I'm not condeming them as an investment, in fact, I think they'll be a very good investment for quite a while.

The minute I hear the words "banking reform" though I'd short GS first and JPM second. 

 

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