Post on 14-Jul-2015
transcript
10. Capital One (NYSE: COF)
• Market Cap: $44.9
billion
• Capital One derives a
large portion of its
revenue from its
credit card business,
which should benefit
from the improving
U.S. economy
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March 31, 2015
9. Bank of New York Mellon (NYSE: BK)
• Market Cap: $44.9
billion
• BNY Mellon has a
strong and diverse
business, focused on
investment
management and
services
• The bank’s total assets
have nearly
quadrupled over the
past decade 3
March 31, 2015
Photo is in the public domain
8. PNC Financial (NYSE: PNC)
• Market Cap: $48.9
billion
• PNC has a strong
history of profitability,
even during the
financial crisis
• Concentrated in the
eastern U.S., PNC is
a leading provider of
services to mid-sized
businesses4
March 31, 2015
Source: wikipedia user Jgera5
7. Morgan Stanley (NYSE: MS)
• Market Cap: $71.8 billion
• Morgan Stanley has
done an excellent job of
growing its wealth
management business
(18% year-over-year
asset growth)
• And, IPO and M&A
revenue have been a
strong driver of growth
as well
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March 31, 2015
6. U.S. Bancorp (NYSE: USB)
• Market Cap: $78.1 billion
• A longtime favorite of
Warren Buffett, US Bank
is considered one of the
highest-quality banks in
the industry
• The company runs more
efficiently and profitably
than most of its peers,
which is why it trades for
a premium valuation
6
March 31, 2015
Source: wikipedia user Ricardo630
5. Goldman Sachs (NYSE: GS)
• Market Cap: $83.2
billion
• This investment
banking leader has
benefitted from the
red-hot IPO and M&A
markets of the past
few years
• Warren Buffett once
called his investment
in Goldman Sachs a
“bet on brains” 7
March 31, 2015
4. Citigroup (NYSE: C)
• Market Cap: $156.7
billion
• The smallest of the “big
four” banks, Citigroup is
considered to be one of
the riskier investments
• Citi Holdings still has
nearly $100 billion in
“legacy” assets, and the
company has more
exposure to risky
international markets than
its peers8
March 31, 2015
3. Bank of America (NYSE: BAC)
• Market Cap: $163.3
billion
• Bank of America
trades at a substantial
discount to book
value due to several
risk factors including
– Litigation risk
– Poor history of risk
management
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March 31, 2015
2. JPMorgan Chase (NYSE: JPM)
• Market Cap: $227.3
billion
• JPMorgan has $2.6
trillion is assets
(largest in the U.S.)
and operates in more
than 50 countries
• The bank has
produced strong loan
growth, and rising
interest rates could
push profits higher 10
March 31, 2015
1. Wells Fargo (NYSE: WFC)
• Market Cap: $281.8
billion
• Despite only being
the #4 bank by
assets, Wells Fargo
commands a
premium valuation
because of its high
asset quality and
history of profitability
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March 31, 2015
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