Wells Fargo vs Bank of America

aside $19.5 billion in provisions for loan losses in the fourth quarter, a decline of $13.1 billion

Going in the opposite direction were two liabilities. Long term debt went down from $1.91 billion during 2004FY to $1.57 billion in 2005FY while accrued expenses dropped from $1.67 billion to $1.52 billion over the same period.

Our paper today will be on Wells Fargo. Wells Fargo is an American bank that was created in 1852 by Henry Wells and James Fargo. It is the second largest bank in the USA in terms of market cap, operates in over 42 countries around the world, and has over 260,000 employees.

Today, Wells Fargo is a bank holding company that engages in the provision of banking, insurance, investments, mortgage, and consumer and commercial finance. Wells Fargo is #5 of the World’s largest Public Companies for 2017, according to Forbes. The company has a market value of $274.4 Billion with 269,100 employees.

Financial statements for banks have uniquely different analytical problem than statements for manufacturing, service and most companies in general. Therefore this analysis of JPMorgan and Chase 's financial statements requires a different approach in order to recognize the banks worth as an investment.

In this paper I will be analyzing the financial statements of Kroger and Costco. It is my job to compare and contrast the two companies’ based on their liquidity, solvency, and profitability. This will be done by integrating the concepts I have been introduced to throughout the course by using appropriate ratios and current accounting principles. I chose Kroger Company since it is an American retailer that was rated the country’s largest supermarket chain by revenue and second-largest general retailer. Kroger maintains markets in 34 states with over 2,600 supermarkets and multi-department stores. Also, I chose Costco since it is the third largest retailer in the United States falling right behind Kroger.

Wells Fargo is third largest bank in the US, The World second largest bank (in deposits, home mortgage servicing, and debit cards)

In the SWOT analysis for Bank of America one I performed a SWOT analysis for the Bank of America. I assumed the role of a mutual fund manager work for First Investment Inc Investment Inc. With the information I gathered in part one of my paper I made the decision to invest in Bank of America. In part two of these papers I will further explain why I chose to invest in Bank of America. This paper will address the financial health of Bank of America by reviewing the banks income statement, balance sheet, and cash flow (MGT/521 course syllabus). I will also analyze Bank of America’s financial health and compare it against another bank. After I do the comparison I will compare Bank of America technological advantages, or address any

The Competitive Profile Matrix indicates that JPMorgan Chase has the highest weighted score of 2.81 which is an indication that they are leading in the Banking industry over Bank of America with a score of 2.65 and Wells Fargo in third place with a score of 2.51. None of the three banking institutions fell below the average of 2.5 which is considered a weak position. Some of the contributing factors are as follows: On Financial Strength in 2015 JP Morgan Chase had assets of 2.39 trillion dollars, and Bank of America’s assets was at 2.17 trillion dollars, while Wells Fargo trailed with assets of 1.44 trillion dollars. On Technology initiatives, in addition to the large amounts of resources assigned to banking technology, JP Morgan Chase has a technology budget of 500 million dollars for Cyber Security; Bank of America invested 400 million, while Wells Fargo spent 250 million on Cyber Security.

From the analysis, the underlying reasons for ABC to be in current state are the excessive borrowings to expand, high operating costs, poor credit control, constant issues on equity

I came up with $3.2m by taking the 1st quarter revenue of $718,000 which is historically approximately 22.5% of the yearly revenue.  Assuming this holds true again in 1991, the annual revenue in 1991 will be around $3.2m.  This is a 19% year over year increase in revenue for BLC, which is in line with their year over year growth in 1989, and less than the 34% in the best year, 1990.

As to the techniques chosen for this research, textual analysis is employed and a comparison method is also adopted. It is believed that these methods are suitable for the research because through analyzing the relative bank performance reports, access to all the available information needed in the research can be gained and assessment can be made, which provides both a separate evaluation and generalization on the sample banks’ credit risk management practices. Those outcomes will be the findings about the second research question and the basis of the rest of questions. While comparisons, as already implied in the research questions, are obviously necessary means for answering the last three research questions, from which the possible

Review the normal ratios that would be looked at for growth, such as return on revenue, operating margin, net income and earnings per share almost when looking to see what type of growth has taken place at a given institution. The three institutions that will be looked at for the scope of this analysis are SunTrust Bank, PNC Bank, and Regions Bank. Each of these institutions are publicly traded and have 10K filings with the SEC. Analysts should never look at ratios alone and the more data one has the better picture one can assimilate to better reflect the true picture of the financial performance of the institution. Caution must be used here as well not to rely heavily on averages since outliers on data can skew averages, may not give an accurate depiction of the actual growth-taking place at a particular bank, and can even be misleading by itself.

Review the normal ratios that would be looked at for growth such as return on revenue, operating margin, net income and earnings per share almost when looking to see what type of growth has taken place at a given institution. The three institutions that will be looked at for the scope of this analysis are SunTrust Bank, PNC Bank, and Regions Bank. Each of these institutions are publicly traded and have 10K filings with the SEC. Analysts should never look at ratios alone and the more data one has the better picture one can assimilate to better reflect the true picture of the financial performance of the institution. Caution must be used here as well not to rely heavily on averages since outliers on data can skew averages, may not give an accurate depiction of the actual growth-taking place at a particular bank, and can even be misleading by itself.

As previously said in the introduction, this paper intends to survey the latest performance of banks belong to the financial industry. The samples are selected by the nation’s economic place in the world, this method can be better explained by the formula below, the GDP figure is from the World Bank’s 2015 GDP ranking statistics.