Banking stocks are typically more volatile than other sectors, but they can also have a lot of upside potential. These are companies that offer a wide range of services for both consumers and investors.
Bank stocks are generally favored by value investors because they often pay high dividends and offer a lot of growth in earnings per share over time. They also usually have lower regulatory risks than other types of stocks.
Bank of America
Bank of America is a large and well-diversified financial institution serving consumers, businesses, governments and institutions worldwide. It provides a full range of banking, investment and asset management products and services.
It offers savings and current accounts, investments, lending facilities, credit cards, mortgages and other consumer and commercial financial services. It is a member of the S&P 500.
The company’s operations and management are divided into five divisions: Retail Banking, Commercial and Global Markets, Financial Institutions, Global Transaction Services and Wealth Management.
Consumer Banking is the largest of the divisions and accounts for 38% of the company’s total revenue. The company’s retail divisions offer consumer deposit accounts, a wide range of loans and credit cards, mortgage services, merchant services and brokerage services.
The company’s net income rose to $7.1 billion in Q4 2022, topping analysts’ expectations. The results were driven by higher interest rates and loan growth. Expense management also helped drive operating leverage for the sixth consecutive quarter, CEO Brian Moynihan said in a statement.
Citigroup, based in New York, is a diversified financial services holding company. It serves consumers, corporations, governments, investors, and institutions in more than 160 countries and jurisdictions.
The company has two segments: Global Consumer Banking and Institutional Clients Group. The former offers traditional banking products and services to retail customers through local branches, offices, and electronic delivery systems. …Top 5 US Banking Stocks Continue Reading >>>