AMERICA's
BEST BANKS
2021
EDITED BY Antoine Gara
JANUARY 28, 2021
s the United States emerges from the Coronavirus pandemic,
America’s biggest banks have navigated a unique 12-month
stretch in pristine shape.
Though Covid-19 hammered the economy, lenders across the country are profitable, thriving, and ready to lend. Businesses and borrowers were able to handle their payments thanks to two rounds of Federal government stimulus, extended unemployment benefits, and the Small Business Administration’s support of mom-and-pop businesses.
Emergency measures implemented by the Federal Reserve helped thaw corporate credit and mortgage finance markets during the worst of the pandemic, leading to record issuance and refinancing activity. Record low borrowing rates have been an added stimulus for households and business, lowering overall expenses. Hidebound Americans improved their finances and defaults remained low. Last year, there were just four bank failures in America, the same as in the prior year, despite the economic stress created by Covid.
With vaccines being rolled out, banks are now preparing to finance a business boom that some economic commentators are dubbing “the Roaring Twenties.” The banking industry is also undergoing a digital transformation, which has cut costs and allowed lenders to close bank branches.
Only about 5% of banks in America are now unprofitable, according to data from the Federal Deposit Insurance Corporation, and about 53% of banks reported annual increases in profits in 2020. Due to plunging interest rates, average return on assets fell below 1% in the third quarter and net interest margins plumbed new record lows. Thus, despite the industry’s robust health, there is a broad disparity in the performance of the biggest banks.
Forbes’ 12th annual look at America’s Best Banks ranks the 100 largest publicly-traded banks and thrifts based on their growth, credit quality and profitability.
S&P Global Market Intelligence provides the data, but the rankings below are done solely by Forbes.
Click here for more details on the methodology and the full story
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