17 September, 2014

Ranking the Biggest U.S. Banks: A New Entrant in Top 5

Quarter after quarter, year after year since the financial crisis, the rankings of the four largest banks have remained boringly consistent: J.P. Morgan Chase  & Co., Bank of America Corp., Citigroup Inc., and Wells Fargo & Co.

But move past the big four, and the fifth spot is where the action is.

SNL Financial is out with its ranking of the top 50 banks by assets and thrifts in the second quarter, and Bank of New York Mellon Corp. has overtaken U.S. Bancorp for fifth place on the list.

BNY Mellon’s total assets jumped 8.8% to $400.74 at the end of the second quarter from $368.24 billion in on March 31. U.S. Bancorp’s grew 6.9% to $389.07 billion in assets at the end of the quarter. It now ranks sixth.

Of course, the rest of the top five continued to be dominated by the big four: J.P. Morgan, BofA, Citi and Wells Fargo.

Capital One Financial Corp. and HSBC North America Holdings Inc. flip-flopped. Capital One moved up a spot to eighth, while HSBC dropped to ninth.

In compiling the list, SNL excluded industrial banks, nondepository trusts and companies with less than a 25% deposit to asset ratio, a move that left banks like Goldman Sachs Group Inc.GS +0.03% and Morgan Stanley off the list. It also calculated pro forma assets for companies with pending M&A deals or deals that have closed since the end of the second quarter.

Raleigh, N.C.-based First Citizens BancShares Inc.broke into the list, following its June deal to buy First Citizens Bancorp of Columbia, S.C. That deal is expected to close in the fourth quarter. Adjusting for the merger, First Citizens landed 44th on the list, with $8.44 billion more in assets.

CIT Group Inc.moved up three places to 31st on the list due to its pending acquisition of OneWest Bank NA’s parent company, announced in July.

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