Under those circumstances, many will investors will ask if smaller financial institutions like US Bank; or US Bancorp (NYSE: USB), are a better risk.Read more
There’s also less exposure to the mortgage market which is still on some very shaky ground. U.S. Bancorp controlled around 2.8% of the mortgage in first quarter 2017, compared to the 16.3% that Wells Fargo owned, Forbes Great Speculations pointed out.
The volume of mortgage originations is falling dramatically dropping from $561 billion in 3rd Quarter 2016 to $361 billion in Quarter One 2017. That’s a decline of more than $35% or $200 billion in just six months.Read more
Another reason why bank revenues are growing is that upper income families are making more money. University of Berkeley Economist Emmanueal Saez reported that the incomes of the richest 1% of US workers increased by 7.7% in 2015, CBS reported.Read more
Zions is a good barometer of the regional economy in the West because it owns several regional banks including: Amegy Bank of Texas, Vectra Bank in Colorado, the California Bank & Trust, the Nevada State Bank, the National Bank of Arizona, The Commerce Bank of Oregon, The Commerce Bank of Washington and Zions First National Bank in Utah. A look at Zions’ financial numbers can give us a glimpse of how the economy in those states is doing.Read more
I’ve begun to really like bank stocks lately because they’re cheap and fast-growing but produce a lot of income. OneRead more
The major economic factors that could affect US Bank’s future are growing income inequality and its underlying cause: wage and income stagnation in the U.S. Average incomes in 81% of the U.S. have not increased since 2000, and in some areas, they are substantially lower. This could affect banks such as US Bancorp because working- and, increasingly, middle-class households have less ability to pay off loans. More defaults and less overall revenue could be a result.Read more