There is a wide difference in loans as assets across banks

Loans as a percentage of assets vary widely across banks, mainly due to the focus of the bank. Traditional banks are likely to have more loans. Those with an investment banking focus are likely to have lower loans. Full-service banks are likely to have a number somewhere in between traditional banks and investment banks.

How did individual banks fare on loans as assets?

Wells Fargo is the best of the big four banks in terms of loans

Wells Fargo (WFC) has the highest percentage of loans as assets among the big four banks. Wells Fargo has 54.19% of its assets as loans. Bank of America (BAC) follows closely behind with 53.88%. JP Morgan (JPM) is considered to have the strongest investment banking division among the big four. JP Morgan has only 33.58% of its assets as loans.

Mid-sized banks have a higher percentage of loans

US Bank (USB) has the highest percentage of loans among the top 10 banks by assets. Among the well-known banks, Sun Trust has the highest percentage of loans as assets. This ratio, together with other indicators, can give an idea of which banks are the best plays in economic recovery.

Banks tend to perform well in the economic recovery phase, because in an economic recovery phase, loan growth is rising and yields on loans are rising. At the same time, non-performing assets are falling. These factors benefit the banks doubly. This makes Sun Trust and US Bank a good play on economic recovery. Both these banks are a part of the Financial Select Sector SPDR (XLF). Sun Trust accounts for a small 0.71% of the portfolio weight of XLF.

Latest articles

MedMen (MMNFF) (MMEN) closed 1.9% higher on Thursday. The company launched a 2020 ballot initiative called “Make it Legal Florida."

On Thursday, James Anderson of Baillie Gifford did an interview with Manager Magazin. Anderson discussed why he thinks Tesla could work without Musk.

Most consumer stocks are outperforming broader markets this year. Investors are flocking to consumer stocks amid fears about an economic downturn.

HEXO reported its third-quarter earnings on June 12. The company reported revenues of $13.0 million, which fell short of analysts’ estimate.

The Hot Chips 31 Symposium started this week. Artificial intelligence was the hot topic among participants Intel, NVIDIA, and Advanced Micro Devices.

Today, Slack (WORK) opened 4.5% higher after MKM Partners analyst Rohit Kulkarni gave Slack stock a "buy" rating with a target price of $40.