During the housing market crash and financial crisis of 2008, the reputation and performance of big banks were at record lows. The actions of several financial firms, including JP Morgan, Goldman Sachs and Bank of America, made investors nervous about putting their money in the hands of Wall Street bankers.
However, these banks led the industry groups in the S&P 500 in 2012 and even reported gains of more than 26 percent overall! For this reason, many stock analysts are saying that the time to invest in big banks and financial ETFs is now.
Here are ten of the top bank stocks you should consider in 2013:
JP Morgan Chase
With more than 2.2 trillion dollars worth of assets, JP Morgan Chase is the largest bank in the United States and arguably the healthiest one during the financial crisis. The company is well diversified, with its hand in investment banking, small business and commercial banking, private equity and asset management. CEO Jamie Dimon and other big players in the world of finance came under fire for receiving bailout money, but JP Morgan repaid the loan quickly, and its net income of $19 billion today shows that the company is thriving.
Bank of New York Mellon
The Bank of New York Mellon was formed by a merger in 2007 and serves many institutions, corporations and wealthy individuals across the country. With assets equivalent to $325 billion, the company focuses on asset and wealth management for its customers.
PNC Financial Services
This Pittsburgh-based financial company provides a wide range of services to businesses and individuals across the country. It covers everything from wealth management to retail banking to real estate finance. PNC is growing rapidly and expanding into new areas in the United States.
Although TD Bank is centralized in the Northeast, Mid-Atlantic and Florida regions, it is one of the largest banks in the United States. It operates over 1,100 retail stores, serves 6.5 million customers, and provides retail, small business, and commercial banking services.
As one of the most recognizable and reputable financial companies in the United States, Capital One offers a wide range of services to individuals and small businesses. It focuses on the areas of checking, savings, loans and investments. It earns about $2.7 billion every year.
Fifth Third Bank
Based in Cincinnati, Ohio, Fifth Third Bank runs lending and banking practices throughout the Midwest and East Coast states. It concentrates on several areas, including branch banking, commercial banking, lending and investing.
Citigroup is an investment on the rise because the company owns more than 1.8 trillion dollars in assets, serves more than 200 million customer accounts, and conducts business in over 140 countries. It operates in the lines of consumer banking and credit, corporate banking, wealth management and securities brokerage.
Wells Fargo engages in banking, insurance, consumer services, mortgage, and investment activities in the United States and abroad. It acquired Wachovia in 2008 and now runs more than 9,000 stores worldwide.
BB&T Corporation is a full-range financial company that provides commercial and retail services. Unlike other banks, BB&T is organized by community banks, and each group has a regional president. This enables simple changes that affect clients in a local area.
Based in Atlanta, Georgia, SunTrust Banks offer a variety of banking services to individuals, small businesses, and institutions throughout the Southern states. With total assets of $178 billion, the company excels in technology-based banking through the internet and mobile devices.
Since 81 financial stocks have added $430 billion to the stock indices in the past few years, it seems that these ten bank stocks are good investments now. Analysts encourage investors to join the market again and to invest in big banks. As consumer confidence rises, they can expect to see large returns this year and in years to come.