Moody’s recently downgraded the 15 largest banks globally, saying that some central banks are not as secure as depositors’ expectations, coupled with billions of transaction losses at JPMorgan Chase (NYSE: JPM). It is clearly shown. Nevertheless, consumers still have to put money somewhere.
24/7 Wall St. has compiled a list of the safest banks to assist consumers during difficult times in progress. The standards are stringent. We focus on currency center banks, super-regional banks, and banks with retail outlets covering multiple states.
24/7 screening of banks with a market value of over the U.S. $ 2 billion. In addition, we screened banks whose stock prices were below 14 times P / E (P / E). The price-to-book value ratio must be less than 2.0. The bank’s minimum return on equity must be 8%. To prove the trust of the candidate bank, the ordinary holder must be paid a dividend yield of 2.0% or more.
selective analysts had to rank banks
Also, selective analysts had to rank banks’ stock prices higher than their current stock prices. Also, by selecting only financial institutions with investment-grade credit ratings, rating agencies do not consider regional banks with less than 100 branches. All but one of the banks on the list traded at over $ 10.00 per everyday stock price. In addition, Warren Buffett and Berkshire Hathaway (NYSE: BRK-A) will be prioritized as owners of common stock.
Even if State Street (NYSE: STT) and New York Mellon Bank (NYSE: B.K.) trust banks meet us, they will continue to focus on the top 50 banks with the most significant retail banking assets. Therefore, it is not included in the screening criteria of “Problem banks,” including Citigroup (NYSE: C) and Bank of America (NYSE: BAC), are excluded.
However, it is almost impossible for depositors to take risks. He also avoided troubled southeastern and Pacific Rim-wide regional banks, which often face financial difficulties in housing and loans during and after the recession. Finally, ignore some of the central banks that recently participated in the M & A. In the end, we eliminated banks that were worried about their feasibility and feasibility during the next recession.
Here are the seven safest savings banks in the United States.
1. Wells Fargo and Company
Wells Fargo & Co. (NYSE: WFC) is the safest bank in the United States. JPMorgan Chase & Company (NYSE: JPM) is currently trading at the approximately U.S. $ 1 trillion in Chase. Wells Fargo has branches in almost every state of the United States, with about 6,200 branch offices and over 12,000 ATMs.
The bank’s asset base is over the U.S. $ 1.3 trillion. In addition, Warren Buffett’s Berkshire Hathaway (NYSE: BRK-A) owns $ 13 billion worth of common stock to prove the bank’s security, which continues to grow.
It has a market value of U.S. $ 171 billion. The price-earnings ratio of these stocks is less than nine times, and the book value is close to 1.2 times. Return on equity is just above 12%, and banks offer ordinary shareholders a dividend yield of 2.7%. The stock sells for about $ 32.50, but this top bank’s Wall Street rating is close.$ 38.00 per share.
2. JP Morgan Chase & Co.
JP Morgan Chase & Co. Despite the media attention on the multi-billion dollar trade loss in (NYSE: JPM), the company is still in good shape compared to many other peers. It has a fort-like balance sheet and assets of $ 2.3 trillion.
CEO Jamie Dimon said the only risk of a bank going bankrupt is a collision between the Earth and the Moon. Although the stock price fell due to transaction losses, the company’s market capitalization is at a considerable level of U.S. $ 135.17 billion.
JPMorgan Chase’s price-earnings ratio is less than eight times, and its book value is only about 0.7 times. Return on equity is 9.8%, and the company pays a dividend rate of 3.4% on common stock. The trading price of a bank’s stock is more than $ 36, but analysts value the company’s $ 47 per share.
3. U.S. Bancorp
Bank of America (NYSE: USB) is a super-regional bank in Minneapolis that is often overlooked as a money center bank. However, it is the fifth-largest commercial bank in the United States, serving millions of consumers. U.S. Bancorp owns the U.S. $ 341 billion in assets, more than 3,000 branches, and more than 5,000 ATMs, and its business covers 25 states in the United States.
Warren Buffett’s Berkshire Hathaway (NYSE: BRK-A) owns approximately 69 million shares worth more than $ 2.1 billion. The market value of banks is the United States. $ 59 billion. Its value is ten times the price-to-earnings ratio and 1.6 times the value of the book.
Return on equity is very high at 16%, and ordinary shareholders are offered a dividend yield of 2.5%, with a stock price of around the U.S. At $ 31.50, Wall Street analysts set a target price of $ 34.25 for this large vault.
4. M & T Banking Company
M & T Banking Company (NYSE: MTB) is located in Buffalo, NY, and currently holds over the U.S. $ 79 billion in assets. M & T has nearly 700 branches and 2,000 ATMs, operating in eight states except for recent small purchases.
It has a market of ca.12 billion, a price market capitalization-to-book value ratio of 12.7, and a price-to-book value ratio of only 1.07. Return on equity at M & T is 9.5%, and ordinary shareholders are paid a dividend of 3.5%. Shares are just above $ 80 per share, but analysts have set a target price of around $ 90.
Berkshire Hathaway (NYSE: BRK-A) owns approximately 5.4 million standard M & T Bank shares, worth more than $ 400 million.PNC Financial Services
5. PNC Financial Services
(NYSE: PNC) is headquartered in Pittsburgh and has approximately $ 300 billion in assets and over 2,500 branches., and nearly 7,000 ATMs in 14 states. It has a market capitalization of U.S. $ 31.10 billion, a price-earnings ratio of 10.6 times, and a book value of fewer than 0.9 times.
Return on equity is 8.9%, and the company pays a dividend of 2.73%. The stock price is less than $ 59, but Wall Street’s goal is $ 70.50. PNC’s financial strength was sufficient to complete the acquisition of National City at the end of 2008 when there was a significant risk to the financial markets. In addition, PNC owns nearly a quarter of the large asset management firm BlackRock Inc. (NYSE: BLK).
(NYSE: KEY) is an exception to the rule that the stock price is less than $ 10.00. Other indicators are sufficient to make up for this exception. It has a market value of only U.S. $ 7.12 billion and assets of approximately U.S. $ $ 87 billion. It operates in 14 states: Rocky Mountain, the Northwest, the Great Lakes, and the Northeast.
Given that KeyCorp is headquartered in Cleveland and has many bad debts, it’s impressive to see it on the list. In addition, the bank’s return on equity is 9.2%, and the dividend payment rate is 2.7%. The stock price is around $ 7.50, but the target price on Wall Street is $ 9.00.
7. BOK Financial Company
BOK Financial Company (NASDAQ: BOKF) is the smallest bank on the list, with a market value of US$3.8 billion and assets of US$26 billion.
The bank holding company is located in Tulsa, Ohio. Common branch names in other states are Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas, and Bank of Colorado State.
BOK’s price-to-earnings ratio is approximately 12.5 times, and its book value is 1.3 times. The return on equity is 11%, and a dividend yield of 2.7% is provided to ordinary holders. The stock price is around US$56.00, and Wall Street analysts aim higher than US$59.00.