The Great Recession of 2008 significantly changed American banking industry. Most banks have faced serious financial problems including those called “too big to fail”. Fortunately, the American economy has finally recovered after the world financial crisis and big banks are on top again.
They have recovered their strength and got back with improved assets and quite strong profits. US banks have made more than $40 billion within just the second quarter. This significant income growth is caused by loans sales, most banks feel confident and lend money to consumers and companies.
Also, we can notice consumers’ activity increase. Americans borrow more money because they believe in the stability of banks and see an economic growth. Small business lending is back in the game again.
Financial experts say that today banking industry is really healthy and strong. Around 300 deals were announced within last year when in 2013 the figure was a little bit more than 200. These results can be called impressive because in 2011 US banks have made only 150 deals.
But except good news, there are also bad ones. The four largest American banks have piled on almost $123 billion in crisis and home loan related settlements – this data is provided by SNL. Bank of America has racked up almost $74 billion. Here is one more concern: net investment edges on account of the augmented low premium rate environment.
Top-5 Banks and Positions Taken by the Giants
SNL has provided data to Forbes magazine to create the list of worst and best American banks to make the situation clear to everybody. This ranking was made concerning three the most important points: profit, quality of assets and adequacy of the capital. Regarding all these factors:
Signature Bank (New York) can be called the best American bank in 2014. This bank was opened in 2001 but its assets’ grows really impresses – now it’s around $27 billion and it has around 30 offices in New York. But CEO of the bank says that their team isn’t going to stop on these results and they plan further development.
Fortunately, there is a lot of space where they can put their offices. Signature Bank serves mostly private businesses with at least $20 million income and pays enough attention to law firms so hard to say that it’s focused on regular consumers and those who want to benefit with small business loans.
The second place is taken by Bank of Hawaii. This bank stays conservative and keeps its strategy. It’s the best banks concerning equity returns within last year.
Other banks of TOP-5 are SVB Financial Group, Bank United and State Street.
As for four biggest banks, they are not so successful anymore so their performance within last year can be called quite weak.
Like this we can find Citigroup under #64, JP Morgan under #73, Wells Fargo at under #82.
It’s worth noticing that Wells Fargo is still the most profitable bank of the biggest banking institutions in the US.
Top 10 Worst Banks
Here is the list of the worst US banks. They are:
- First Commonwealth Financial
- First BanCorp
- Synovus Financial
- Regions Financial
- Bank of America
- People’s United Financial
- Astoria Financial
- Hudson City Bancorp
- First Horizon National
Now it is time to make a choice what bank you want to be a part of.