Overview of Banks in USA
As per the US Federal Deposit Insurance Corporation statistics report dated 30th June 2018, there were 709 savings banks, 5,542 FDIC insured commercial banks in the USA. USA’s central bank is the Federal Reserve Bank (also called as the FED) that was incorporated in the year 1913 and which came into presence after the enactment of the Federal Reserve Act. The US banks and the entire banking system are regulated by state governments and the Federal.
There are majorly four types of banks that are operating in the USA:
- Commercial banks: Mainly serve the businesses and they offer services like granting business loans, accepting deposits, and offering other basic investment products.
- Savings banks: These are for-profit businesses. These banks take deposits from the persons holding an account with them and the money which is collected will be invested by these banks. The people holding an account will earn an interest rate out of the return that it has generated from the investments.
- Savings and loans: These banks are into retail banking services where the person depositing money will earn interest on their deposits. These Banks will then use the money which was deposited with them to provide loans like home loans, auto loans, etc.
- Credit unions: Lastly, these types of banks are non-profit cooperative financial institutions. Credit Unions are controlled generally and owned by people into the same type of living, working or something else which is common amongst these members. These unions will not work to earn profit but to empower the community.
Top 10 Banks in USA
Here is a list of the top 10 Banks which are as follows:
1. JP Morgan Chase & Co
JP Morgan Chase & Co was incorporated in the 19th century by John Pierpont Morgan and is one of the largest banks operating in the USA. This bank was formed by merging of two old banks, Chase Manhattan Corporation, and JP Morgan and company. The bank headquarters is situated in New York. Under the brand name JP Morgan, it provides services like asset management, investment banking, private wealth management, private banking, treasury, and securities services. Fiduciary activity under the group’s private wealth management and private banking segments is done under the brand name of JPMorgan Chase Bank NA – which is the actual trustee. It has handled around US$2.62 trillion of the total assets. JP Morgan Chase & Co had generated revenue of around US$77.44bn in the year 2018. In the same year, the net income of JP Morgan Chase & Co was around US$30.71bn. It employs around 250,000+ employees.
2. Bank of America
Bank of America was established as a small institution with the name of Bank of Italy in 1904 and is second after JP Morgan in terms of assets. The bank headquarters is situated in Charlotte, North Carolina. After the various merger, the bank later became Bank of America and now it has more than 4500 branches. The bank serves in the fields of Global Wealth and Investment Management, Consumer Banking, and Global Banking. It has handled around more than USD$2.36 trillion of the total assets for the year ended 2018. It employs around 150,939+ employees.
3. Wells Fargo
Wells Fargo was founded in 1852 and is the 3rd largest bank in this list by assets and this bank is 2nd in terms of market capitalization. The headquarter of this bank is situated in San Francisco. Bank operates in 3 major business segments: Wholesale Banking, Community Banking, Wealth and Investment Management. This bank has the privilege of receiving a charter first from the US govt. Wells Fargo had generated revenue of around US$64.65 billion in 2018 with total assets US$1.91 trillion. Approximately more than 260,000+ employees work here.
4. Citigroup Inc
Citigroup Inc was first incorporated in 1812 and is the 4th largest bank in terms of asset control. The bank headquarters is in Manhattan, New York. Citigroup Inc offers financial products and services to corporations, consumers, institutions worldwide and governments. The bank operates through two segments: Citi Holdings and Citicorp. The bank reports US$1.92 trillion in assets and US$17.85 net income for 2018. 219,000+ employees work here.
5. Goldman Sachs Group
Goldman Sachs Group was incorporated in the year 1869. The headquarter of the bank is situated in New York. This bank operates in securities and investment management worldwide, investment banking, and it operates through 4 major segments: Institutional Client Services, Investment Banking, Investing & Lending, and Investment Management. The Bank has handled more than US$931.80 billion of the total assets with a net income of around USD$10.46 billion in 2018. More than 35,000 employees work here.
6. Morgan Stanley
Morgan Stanley was established in 1935. The bank is headquarters in New York. The bank operates through 2 segments: Institutional Securities, which offers financial advisory services and capital raising, along with advice on mergers and acquisitions, restructurings, real estate, and project finance; and Wealth Management, which offers various financial solutions and services. It has handled around US$854.59 billion of the total assets in the year 2018 and net profit US$8.75 billion for the same period. It employs more than 56,000+ people.
7. US Bancorp
US Bancorp was established after the merger of regional banks that were from the Midwest and west and further, it is a holding company that provides financial services and banking services through its subsidiary. The headquarter of this bank is in Minneapolis. This bank comes at number 7 in terms of total assets acquired. It employs more than 71,000 people. Total assets reported as of 2018 were US$467.37 billion, net income US$7.096 billion.
8. PNC Financial Services Group
PNC Financial Services Group ranks at number 8 in terms of total assets controlled. This bank was formed by the merger of 2 Pennsylvania banks Providence National Corporation and Pittsburgh National Corporation after which they were re-named the merged company as PNC. Services are offered like Corporate and Institutional Banking, BlackRock, Retail Banking, Residential Mortgage Banking, Asset Management Group, and other Non-Strategic Assets Portfolio segments. 49,000+ employees are employed by this bank. The bank reports US$9.72 billion for the year 2018 in terms of Net interest income and total assets US$382.32 billion in assets.
9. Bank of New York Mellon
This bank was founded in 1784. This bank was formed after the merger of Pittsburgh based financial institution – Sons and T. Mellon. Bank of New York Mellon offers services to companies, institutional investors, banks, and other public sector banks. This bank is the world’s largest custodian bank for all other banks or says the financial institutions. It has handled around US$362.87 billion of the total assets and net income reported in 2018 was US$4.24 billion.
10. State Street Corporation
State Street Corporation is one of the largest asset managers in the entire world and stands 10 in this list. Bank provides investment services to its customers along with trading and securities lending. For 2018 net profit stood above US$2.6 billion with total assets of US$244.63 billion.
This has been a guide to Top banks in USA. Here we have discussed the 10 topmost banks in USA with their financial structure. You may also look at the following articles to learn more: