20 Most Profitable Banks in the US in 2024

In this part, we’ll take a look at the 20 most profitable banks in America in 2024. If you want to check out our coverage of the latest news in the US banking industry, you can take a look at the 5 Most Profitable Banks. In America in 2024.

The U.S. banking industry of 2024 is vastly different from what consumers, analysts, and investors expected before the onset of the coronavirus pandemic in 2020. Before the pandemic, interest rates were moderate and ranged between 1.50% and 1.75%, allowing banks to lend. money to each other. However, when COVID-19 forced governments to close factories, hospitality establishments, and other business avenues, rates were cut to nearly 0% to ensure that some economic activity could survive and production could ramp up. The decline can be easily compensated to some extent. capital.

However, as they say, there is no such thing as a free lunch, with interest rates now reaching levels just before the Great Recession of 2008 as a result of a surge in inflation following the loose monetary policies of the pandemic era. Since banks are involved in the business of money, high interest rates are closely linked to their operations. Generally, while consumers bemoan higher rates, banks are happy as they are able to increase their ‘spreads’ and earn more profits, even though lending is being reduced due to tight monetary conditions.

Additionally, higher rates may also mean that banks find it difficult to manage their asset base, which is often another term for funds that banks have invested in securities such as bonds. If rates fluctuate too much, these securities will have to be revalued, and the resulting losses could put some of the largest banks out of business. This became evident last year in the 2023 US banking crisis, and you can learn more about it by reading The Top 20 Most Profitable Banks in the World.

Fast forward to 2024, the first earnings season of the year for US banks starts in April 2024. Some of the biggest names in the American banking industry, The Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), Morgan Stanley (NYSE:MS), Bank of America Corporation (NYSE:BAC), The Bank of New York Mellon Corporation (NYSE:BK), and the PNC Financial Services Group, Inc. (NYSE:PNC) has come out with its latest financial results.

Let’s start with Goldman Sachs as it has been one of the most troubled US banks recently, with its Q1 2024 results somewhat choppy. Since the result, Goldman’s shares have risen 3.7% since its latest earnings results, and at the center of it all is Goldman’s revived investment banking division that just beat analysts’ expectations of a turnaround in the deal. The bank’s investment banking fees rose 32% to $2.08 billion in its latest results. At the same time, Goldman’s consumer banking division also reported a 24% increase in revenue, a nice breath of fresh air after years of costly losses and write-offs.

Another record-setting group of financial results in the US banking industry came from New York City-based The Bank of New York Mellon Corporation (NYSE:BK). In its first-quarter earnings the bank reported a respectable revenue of $4.53 billion, a modest figure when we consider banking giants like JPMorgan Chase & Co. (NYSE: JPM). While we’ll get to JPMorgan in a moment, BNY’s latest quarterly revenue of $4.53 billion was the highest in its 240-year history. Not only did BNY’s revenue beat analyst estimates of $4.39 billion, but its net income of $953 million and earnings per share of $1.25 also beat analyst estimates of $890 million and $1.19, respectively.

However, as you may know, an earnings decline is no guarantee of favorable share price performance following earnings results. This was also true in the case of JPMorgan, whose revenues of $42 billion and net income of $13.4 billion were unable to prevent a 6.5% share price decline on the day of the earnings report. So why did JPMorgan shares fall? Well, US Bank’s net interest income declined 4% sequentially, a higher delinquency rate for the consumer banking division, and a disappointing decision to keep 2024 interest income guidance unchanged despite expectations of an upward revision in a few quarters. .

In the final part, here’s what JPMorgan Chase & Co. (NYSE: JPM) Chief Financial Officer Jeremy Barnum had to say during the earnings call:

Our total NII guidance remains approximately $90 billion, which means our market NII guidance has decreased from approximately $2 billion to approximately $1 billion. The primary driver of that decline is balance sheet growth and mix changes in market business. And as a reminder, changes in market NII are generally revenue neutral. Our outlook for adjusted expenses is now approximately $91 billion, which reflects the increase in the FDIC special assessment that I already mentioned.

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our methodology

To create our list of the most profitable US banks, we ranked the 50 most valuable US banks by market capitalization based on their latest trailing twelve month net income and chose the most profitable banks.

20 Most Profitable Banks in America in 2024

  1. KeyCorp (NYSE:KEY)
    Net income for the last twelve months: $967 million

KeyCorp (NYSE:KEY) is an American bank headquartered in Cleveland, Ohio. It meets the needs of both consumers and businesses. Prior to releasing its earnings in the third week of April, past financial performance has been a bit mixed as KeyCorp (NYSE:KEY) has beaten analyst EPS estimates in only two of its four latest quarters. It joins JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corporation (NYSE:BAC), and Wells Fargo & Co. (NYSE:WFC) on our list of the most profitable U.S. banks.

  1. Ally Financial Inc. (NYSE:ALLY)
    Net income for the last twelve months: $1 billion

Ally Financial Inc. (NYSE:ALLY) is a large American bank headquartered in Detroit, Michigan. April 2024 brought some great news for bank investors, as ahead of the latest earnings call, Ally Financial Inc. (NYSE: ALLY) declared a 30 cent dividend on its common stock and an $11.75 dividend on its preferred shares.

  1. East West Bancorp, Inc. (NASDAQ:EWBC)
    Net income for the last twelve months: $1.1 billion

East West Bancorp, Inc. (NASDAQ:EWBC) is a California-based bank that offers products such as accounts and letters of credit. Of the 13 analysts covering its stock till April 2024, six rate the shares as Hold and the remaining have a 4:3 split between Buy and Strong Buy.

  1. Citizens Financial Group, Inc. (NYSE:CFG)
    Net income for the last twelve months: $1.4 billion

Citizens Financial Group, Inc. (NYSE:CFG) is a Rhode Island-based bank that serves the needs of industrial, commercial and other users. As the investment banking environment in the US appears to be loosening up a bit, it made a significant change in April 2024 by appointing a former Morgan Stanley executive as head of wealth management.

  1. Huntington Bancshares Incorporated (NASDAQ:HBAN)
    Net income for the last twelve months: $1.8 billion

Huntington Bancshares Incorporated (NASDAQ:HBAN) is a diversified regional bank based in Ohio with approximately twenty thousand employees. Its investors got some big news in April 2023, when Jefferies upgraded shares from Hold to Buy and set a $16 share price target for the bank based on new business lines and markets.

  1. State Street Corporation (NYSE:STT)
    Net income for the last twelve months: $1.8

With approximately 43,000 employees, State Street Corporation (NYSE:STT) is one of the largest banks in the US in addition to being one of the most profitable US banks. In its latest financial results, the US banking giant beat analyst revenue and EPS estimates in the segment by posting $3.13 billion and $1.37, respectively. State Street Corporation (NYSE:STT) also shared that as of the first quarter of 2024, its $4.34 trillion assets under management were at a new record high.

  1. Fifth Third Bancorp (NASDAQ:FITB)
    Net income for the last twelve months: $2.2 billion

Fifth Third Bancorp (NASDAQ:FITB) is an Ohio-based bank that works with governments, consumers, and small businesses. Shares have an average Buy rating, and the average analyst share price target is $39.13.

  1. M&T Bank Corporation (NYSE:MTB)
    Net income for the last twelve months: $2.7 billion

M&T Bank Corporation (NYSE: MTB) is a New York State-based bank that serves the needs of businesses, the affluent, and regular customers. Its shares rose more than 5% after its first-quarter earnings, as management was eager to emphasize that it was continuing to reduce exposure to America’s troubled commercial real estate market.

  1. Bank of New York Mellon Corporation (NYSE:BK)
    Net income for the last twelve months: $3 billion

The Bank of New York Mellon Corporation (NYSE:BK) is a large bank based in New York City with over fifty thousand employees. A centuries-old bank, its history didn’t hold it back during its latest earnings, with The Bank of New York Mellon Corporation (NYSE:BK) reporting record quarterly revenue in more than two hundred years.

  1. Capital One Financial Corporation (NYSE:COF)
    Net income for the last twelve months: $4.5 billion

Capital One Financial Corporation (NYSE:COF) makes loans, offers credit and debit cards, and has other banking products in its portfolio. Ahead of its upcoming earnings, shares have been given an average Buy rating, and the average analyst share price target is $151.07.

  1. Charles Schwab Corporation (NYSE:SCHW)
    Net income for the last twelve months: $4.6 billion

Charles Schwab Corporation (NYSE:SCHW) is one of the most well-known banks in America, particularly because of its savings and loan business. Shares in April 2024 after the bank shares its net interest, following its latest earnings results

Shares surged in April 2024 when the bank shared that its net interest margin, or dollars earned in interest on amounts spent as costs, would increase during the year.

  1. US Bancorp (NYSE:USB)
    Net income for the last twelve months: $5 billion

U.S. Bancorp (NYSE:USB) has more than 75,000 employees and is headquartered in Minneapolis, Minnesota. While some banks are focusing on dealmaking in 2024, the U.S. The Bancorp (NYSE:USB) focuses on lending to energy companies and is among the 30 largest U.S. liquidity suppliers to the energy sector, according to Bloomberg data.

  1. PNC Financial Services Group, Inc. (NYSE:PNC)
    Net income for the last twelve months: $5.5 billion

PNC Financial Services Group, Inc. (NYSE:PNC) is a Pennsylvania-based bank that serves the needs of regular customers, companies, and retirees. Its first-quarter earnings results were disappointing figures, with PNC Financial Services Group, Inc. (NYSE: PNC) missing analyst revenue estimates of $5.19 billion by posting $5.15 billion in the segment.

  1. Citigroup Inc. (NYSE:C)
    Net income for the last twelve months: $7.9 billion

Citigroup Inc. (NYSE:C) is by far the largest bank on our list with over 200,000 employees. Its first-quarter earnings declined 27% year over year, but earnings of $1.58 per share beat analyst EPS estimates.

  1. Goldman Sachs Group, Inc. (NYSE:GS)
    Net income for the last twelve months: $7.9 billion

Goldman Sachs Group, Inc. (NYSE:GS) is a large investment bank and wealth manager headquartered in New York City. The latest set of financial results marked a positive turnaround, with The Goldman Sachs Group, Inc. (NYSE:GS) finally reported a turnaround of its consumer banking division and benefited from a surge in Wall Street deal making.

Bank of America Corporation (NYSE: BAC), The Goldman Sachs Group, Inc. (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM), and Wells Fargo & Co. (NYSE:WFC) are the most profitable. Bank in America.

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