In the world of banking, these are the big boys. They're the leaders in lending and setting rates for the smaller banks. They are those larger banks located in major cities around the globe that raise most of their funds from the domestic and international money markets, relying less on depositors for funds. Typically money center banks borrow from and lend to governments, corporations, and other banks, and to a lesser extent consumers. As a result they are often subject to extensive government oversight.
Most of the fundamentals of these companies were the cause/result of the financial meltdown that occurred during 2008/2009 and many slashed their dividend at the time. As a consequence, many of the dividend growth rates listed below seem high but in reality they are just trying to quickly return to levels prior to 2009.
Below are just a few of the money center banks that deserve further analysis. Hopefully the information and links below are a good starting point.
Most of the fundamentals of these companies were the cause/result of the financial meltdown that occurred during 2008/2009 and many slashed their dividend at the time. As a consequence, many of the dividend growth rates listed below seem high but in reality they are just trying to quickly return to levels prior to 2009.
Below are just a few of the money center banks that deserve further analysis. Hopefully the information and links below are a good starting point.
1. Wells Fargo & Company provides retail, commercial, and corporate banking services to individuals, businesses, and institutions. Its Community Banking segment offers checking, savings, market rate, individual retirement, and health savings accounts, as well as time deposits and remittances; and lines of credit, auto floor plan lines, equity lines and loans, equipment and transportation loans, education and residential mortgage loans, and debit and credit cards. This segment also provides equipment leases, real estate and other commercial financing, small business administration financing, venture capital financing, cash management, payroll services, retirement plans, and merchant payment processing and private label financing solutions, as well as purchases retail installment contracts. Its Wholesale Banking segment offers commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, trade financing, collection, foreign exchange, treasury management, investment management, institutional fixed-income sales, interest rate, commodity and equity risk management, insurance, corporate trust fiduciary and agency, and investment banking services, as well as online/electronic products. This segment also provides construction, and land acquisition and development loans; secured and unsecured lines of credit; interim financing arrangements; rehabilitation loans; affordable housing loans and letters of credit; loans for securitization; commercial real estate loan servicing; and real estate and mortgage brokerage services. The company’s Wealth, Brokerage and Retirement segment offers financial advisory, wealth management, brokerage, retirement, trust, and reinsurance services. As of February 25, 2015, it operated through approximately 8,700 locations and 12,500 ATMs; offices in 36 countries; and wellsfargo.com Website. The Company was founded in 1852 and is headquartered in San Francisco, California.
(Summary) (Company) (Daily Chart)
(Summary) (Company) (Daily Chart)
| 10 May 2015 Price $56.05 1yr Target $57.42 Analysts 29 1yr Cap Gain 2.44% Dividend $1.40 Yield 2.49% 1yr Est Tot Return 4.93% 1yr DivGR 17.39% 2yr DivGR 14.31% 3yr DivGR 33.41% P/E 13.70 PEG 1.41 | Market Cap $288.41 Bil Beta 1.07 EPS (ttm) $4.09 Payout Ratio 34.22% EPS next yr $4.49 Forward P/E 12.49 Debt/Equity 1.10 ROA 1.30% ROE 13.20% ROI 9.10% Sales $47.90 Bil Income $21.68 Bil Profit Margin 45.26% |
2. JPMorgan Chase & Co. operates through four segments: Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset Management. The Consumer & Community Banking segment offers deposit and investment products and services to consumers; lending, deposit, and cash management and payment solutions to small businesses; and residential mortgages and home equity loans, as well as provides credit cards, payment services, payment processing services, and auto and student loans. The Corporate & Investment Bank segment provides investment banking, market-making, prime brokerage, and treasury and securities products and services to corporations, investors, financial institutions, and government and municipal entities. The Commercial Banking segment offers financial solutions, including lending, treasury, investment banking, and asset management to corporations, municipalities, financial institutions, and nonprofit entities, as well as finances real estate investors and owners. The Asset Management segment provides investment and wealth management services across various asset classes, such as equities, fixed income, alternatives, and money market funds; multi-asset investment management services; retirement products and services; and brokerage and banking services comprising trusts and estates, loans, mortgages, and deposits. The company was founded in 1799 and is headquartered in New York, New York.
(Summary) (Company) (Daily Chart)
(Summary) (Company) (Daily Chart)
| 10 May 2015 Price $65.49 1yr Target $70.05 Analysts 28 1yr Cap Gain 6.96% Dividend $1.76 Yield 2.68% 1yr Est Tot Return 9.64% 1yr DivGR 14.70% 2yr DivGR 16.46% 3yr DivGR 24.65% P/E 11.99 PEG 1.57 | Market Cap $243.19 Bil Beta 1.70 EPS (ttm) $5.46 Payout Ratio 32.23% EPS next yr $6.49 Forward P/E 10.09 Debt/Equity 1.31 ROA 0.80% ROE 9.80% ROI 6/60% Sales $51.30 Bil Income $20.64 Mil Profit Margin 40.23% |
3. Bank of America Corporation provides banking and financial products and services for individual consumers, small and middle market businesses, institutional investors, large corporations, and governments worldwide. The company operates through Consumer & Business Banking; Consumer Real Estate Services; Global Wealth & Investment Management; Global Banking; Global Markets; and Legacy Assets & Servicing segments. It offers traditional and money market savings accounts, CDs and IRAs, checking accounts, and investment accounts and products, as well as credit and debit cards; and lending related products and services, working capital management, and treasury solutions. The company also provides consumer real estate products comprising fixed and adjustable-rate first-lien mortgage loans for home purchase and refinancing needs, home equity lines of credit, and home equity loans. In addition, it offers investment and brokerage, estate and financial planning, fiduciary portfolio management, cash and liability management, and specialty asset management services; and retirement and benefit plan, philanthropic management, and asset management services. Further, the company provides various commercial loans, leases, commitment facilities, trade finance, and real estate and asset-based loans; treasury management, foreign exchange, and short-term investing options; and debt and equity underwriting and distribution, and merger-related and other advisory services. Additionally, it offers sales and trading services for securities and derivative products in primary and secondary markets; market-making, financing, securities clearing, settlement, and custody services to institutional investor clients; and risk management products. The company provides its products and services through 4,800 banking centers, 15,800 ATMs, call centers, and online and mobile banking platforms. Bank of America Corporation was founded in 1874 and is based in Charlotte, North Carolina.
(Summary) (Company) (Daily Chart)
(Summary) (Company) (Daily Chart)
| 10 May 2015 Price $16.45 1yr Target $18.24 Analysts 27 1yr Cap Gain 10.88% Dividend $0.20 Yield 1.21% 1yr Est Tot Return 12.09% 1yr DivGR 200.00% 2yr DivGR 73.20% 3yr DivGR 43.69% P/E 24.55 PEG 2.89 | Market Cap $172.76 Bil Beta 1.66 EPS (ttm) $0.67 Payout Ratio 29.85% EPS next yr $1.60 Forward P/E 10.28 Debt/Equity 1.04 ROA 0.30% ROE 3.30% ROI 7.60% Sales $49.91 Bil Income $7.28 Bil Profit Margin 14.58% |
4. Citigroup Inc. provides various financial products and services for consumers, corporations, governments, and institutions worldwide. The company operates through two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG). The GCB segment offers traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards, and Citi retail services. This segment provides various banking, credit card lending, and investment services through a network of local branches, offices, and electronic delivery systems. As of December 31, 2014, it operated 3,280 branches in 35 countries. The ICG segment offers various banking, and financial products and services to corporate, institutional, public sector, and high-net-worth clients. This segment provides wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate lending, investment banking and advisory services, private banking, cash management, trade finance, and securities services. Citigroup Inc. was founded in 1812 and is based in New York, New York.
(Summary) (Company) (Daily Chart)
(Summary) (Company) (Daily Chart)
| 10 May 2015 Price $54.02 1yr Target $62.46 Analysts 26 1yr Cap Gain 15.62% Dividend $0.20 Yield 0.37% 1yr Est Tot Return 15.99% 1yr DivGR 0.00% 2yr DivGR 0.00% 3yr DivGR 9.95% P/E 21.69 PEG 0.85 | Market Cap $163.95 Bil Beta 1.91 EPS (ttm) $2.49 Payout Ratio 8.03% EPS next yr $5.92 Forward P/E 9.13 Debt/Equity 1.04 ROA 0.40% ROE 3.70% ROI 8.00% Sales $60.93 Bil Income $7.56 Bil Profit Margin 12.40% |
5. The PNC Financial Services Group, Inc. operates through six segments: Retail Banking, Corporate & Institutional Banking, Asset Management Group, Residential Mortgage Banking, BlackRock, and Non-Strategic Assets Portfolio. The Retail Banking segment offers deposit, lending, brokerage, investment management, and cash management services to consumer and small business customers through branch network, ATMs, call centers, online banking, and mobile channels. This segment operates 2,697 branches and 8,605 ATMs. The Corporate & Institutional Banking segment provides secured and unsecured loans, letters of credit, equipment leases, cash and investment management, receivables management, disbursement and funds transfer, information reporting, trade services, foreign exchange, derivatives, securities, loan syndications, mergers and acquisitions advisory, equity capital markets advisory, and related services for mid-sized and large corporations, government, and not-for-profit entities. It also offers commercial loan servicing, and real estate advisory and technology solutions for the commercial real estate finance industry. The Asset Management Group segment provides investment and retirement planning, customized investment management, private banking, tailored credit solutions, and trust management and administration for individuals and their families; and institutional asset management services. The Residential Mortgage Banking segment offers first lien residential mortgage loans. The BlackRock segment provides a range of investment and risk management services to institutional and retail clients. The Non-Strategic Assets Portfolio segment offers consumer residential mortgage, brokered home equity loans, and lines of credit, as well as commercial real estate loans and leases. The PNC Financial Services Group, Inc. was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania.
(Summary) (Company) (Daily Chart)
(Summary) (Company) (Daily Chart)
| 10 May 2015 Price $93.65 1yr Target $97.22 Analysts 23 1yr Cap Gain 3.81% Dividend $2.04 Yield 2.17% 1yr Est Tot Return 5.98% 1yr DivGR 9.30% 2yr DivGR 10.13% 3yr DivGR 17.60% P/E 12.88 PEG 1.96 | Market Cap $48.76 Bil Beta 1.06 EPS (ttm) $7.27 Payout Ratio 28.06% EPS next yr $7.77 Forward P/E 12.05 Debt/Equity 0.64 ROA 1.10% ROE 8.70% ROI 9.40% Sales $9.34 Bil Income $3.88 Bil Profit Margin 41.54% |
6. SunTrust Banks, Inc. operates in three segments: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking. The Consumer Banking and Private Wealth Management segment offers deposits, home equity lines and loans, credit lines, indirect auto loans, student loans, bank cards, and other lending products, as well as various services. This segment also provides wealth management products and professional services, including brokerage, professional investment management, and trust services; and family office solutions. The Wholesale Banking segment offers corporate and investment banking solutions, such as advisory, capital raising, and financial risk management, as well as lease financing solutions; cash management services and auto dealer financing, as well as corporate insurance premium financing solutions; and construction, mini-perm, and permanent real estate financing, as well as tailored financing and equity investment solutions. This segment also provides treasury and payment solutions, including operating various electronic and paper payment types, such as card, wire transfer, automated clearing house, check, and cash; and offers clients to manage their accounts online. The Mortgage Banking segment offers residential mortgage products in the secondary market. The company serves individuals and families, businesses, institutions, and governmental agencies through its network of traditional and in-store branches, automated teller machines, Internet, and mobile banking channels. As of December 31, 2014, it operated 1,445 full-service banking offices in Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and the District of Columbia. SunTrust Banks, Inc. was founded in 1891 and is headquartered in Atlanta, Georgia.
(Summary) (Company) (Daily Chart)
(Summary) (Company) (Daily Chart)
| 10 May 2015 Price $42.36 1yr Target $44.54 Analysts 27 1yr Cap Gain 5.14% Dividend $0.96 Yield 2.26% 1yr Est Tot Return 7.40% 1yr DivGR 100.00% 2yr DivGR 87.08% 3yr DivGR 78.95% P/E 12.91 PEG 2.21 | Market Cap $22.11 Bil Beta 1.67 EPS (ttm) $3.28 Payout Ratio 29.26% EPS next yr $3.53 Forward P/E 12.01 Debt/Equity 0.59 ROA 0.90% ROE 8.00% ROI 11.50% Sales $5.32 Bil Income $1.74 Bil Profit Margin 32.70% |
7. Comerica Incorporated operates through three segments: Business Bank, Retail Bank, and Wealth Management. The Business Bank segment offers various products and services, such as commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services, and loan syndication services to middle market businesses, multinational corporations, and governmental entities. The Retail Bank segment provides small business banking and personal financial services, including consumer lending, consumer deposit gathering, and mortgage loan origination. This segment also offers a range of consumer products consisting of deposit accounts, installment loans, credit cards, student loans, home equity lines of credit, and residential mortgage loans. The Wealth Management segment provides products and services comprising fiduciary services, private banking, retirement services, investment management and advisory services, and investment banking and brokerage services. This segment also sells annuity products, as well as life, disability, and long-term care insurance products. The company operates in Texas, California, and Michigan, as well as in Arizona and Florida, the United States; Canada; and Mexico. Comerica Incorporated was founded in 1849 and is headquartered in Dallas, Texas.
(Summary) (Company) (Daily Chart)
(Summary) (Company) (Daily Chart)
| 10 May 2015 Price $48.11 1yr Target $47.78 Analysts 27 1yr Cap Gain -0.69% Dividend $0.84 Yield 1.68% 1yr Est Tot Return 0.99% 1yr DivGR 16.17% 2yr DivGR 19.84% 3yr DivGR 25.18% P/E 15.22 PEG 1.65 | Market Cap $8.56 Bil Beta 1.38 EPS (ttm) $3.16 Payout Ratio 26.58% EPS next yr $3.45 Forward P/E 13.97 Debt/Equity 0.36 ROA 0.90% ROE 7.80% ROI 13.40% Sales $1.75 Bil Income $581.00 Mil Profit Margin 33.20% |
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