The ROIG Group completed its analysis of industry and individual bank performance in 2022, as defined by publicly traded banks. The research demonstrates that across the banking industry in 2022, Economic Profits in increased materially vs. the prior year across publicly held banks in the US. JPMorgan Chase & Co., Bank of America Corp, Wells Fargo & Company, and Citigroup Inc contributed more than 72% of the improvement. However, the market believes profits across the all benchmarked banks will decline (67%) from current levels.

 

Of note for this year: while 63% of banks were designated in the same state as 2021, 1 in 5 banks upgraded their business designation by moving from REVIVE to OPTIMIZE or OPTIMIZE to GROW.

 

From this list, the banks to watch include the following:

 

UPWARD MOVES:

1. PNC Financial Services Group, Inc

2. Regions Financial Corporation

3. Keycorp

4. Raymond James Financial, Inc

5. BOK Financial Corporation

 

1 in 5 banks also experienced a downward movement from GROW to OPTIMIZE or OPTIMIZE to REVIVE.

 

The top banks to watch include the following:

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DOWNWARD MOVES:

1. Wells Fargo & Company

2. Fifth Third Bancorp

3. Discovery Financial Services

4. Ally Financial Inc (note: downgraded 2 levels from GROW to REVIVE)

5. SoFi Technologies Inc

 

The bottom line is the key to success for any of these banks, regardless of their current state, is to stay in their lane, focus on the key top line and/or bottom line problems inherent in the bounds of their designated state (be it REVIVE, OPTIMIZE, or GROW).

 

Download our new research report, The State of Banking 2022 Revive, Optimize, Incubate and Grow Designations in Banking to learn more.