In my most recent post, I reported that the Largest Big Six US Financial Corps had a very strong 3Q 2011 Total Pretax Earnings increase of 20%. These Big Six are:
Bank of America
Wells Fargo
JPMorgan Chase
Citigroup
Morgan Stanley
Goldman Sachs
And when I added GE Capital Services (GECS), then the Total Pretax Earnings in the 3Q 2011 of the Big Seven US Financial Corps was an even higher 25%.
In this post, I am focusing on the large US National and Regional Banks that are a bit smaller than the above six mega banks and GECS.
I now have found 21 of these banks, with Pretax Earnings or Losses of at least $100 mil each in either the 3Q 2011 or in the 3Q 2010, which have already reported their 3Q 2011 earnings.
How did they do? Well, even better than the Big Seven. These 21 Banks had a Total Pretax Earnings Increase of an exceptional 38%. Here they are, along with their 3Q 2011 Pretax Earnings (PTI):
..........................................3Q............3Q..........Increase
........................................2011.........2010......(Decrease)
.........................................PTI...........PTI.....Amount......%
........................................(in millions of dollars)......
US Bancorp.....................1,742........1,154........588......51%
Capital One Fincl.............1,235........1,153..........82.......7%
PNC Financial..................1,143..........954........189......20%
Bank NY Mellon.................945..........834.........111......13%
State Street Corp................629..........782.......(153)...(20)%
Fifth Third Bancorp(1).......530..........176.........354....201%
BB&T.................................439..........246.........193......78%
Key Corp...........................330..........296..........34......11%
M&T Bank..........................265..........287.........(22).....(8)%
SunTrust Banks..................259..........171..........88......51%
Northern Trust..................253..........237..........16.......7%
Huntington Bancshares.....182...........131..........51......39%
NY Community Bancorp...182...........210........(28)....(13)%
Regions Financial..............182.........(305).......487....160%
Zions Bancorp...................168...........(79).......247....313%
Hudson City Bancorp........139...........208........(69)....(33)%
First Republic Bank...........139...........115..........24......21%
BOK Financial...................128............93...........35......38%
Comerica..........................126............66...........60......91%
SVB Financial...................103............77..........26......34%
Synovus Financial..............37..........(181).......218....120%
Total all 21.....................9,156........6,625.....2,531.....38%
(1) Fifth Third Bancorp 2010 PTI excludes Litigation Settlement Gain.
The major reason for these much improved profits of these US Banks is the substantial, very puzzling Reduction in Loan Loss Provision Charges made by 18 of these 21 Banks.
These 18 Banks had a Total Increase in Pretax Income of $2.5 bil in the 3Q 2011 over the previous year's quarter. How much of this $2.5 bil increase is due just to Lower Loan Loss Provision Charges made? Well, more than all of it. In fact, 25% more than all of it. The Total Reduction in the Loan Loss Provision Charges of these 18 Banks from the previous year's 3Q was an incredible $3.2 bil.
...................................3Q 2011............3Q 2011
..................................Loan Loss.............PTI
..................................Provision...........Increase
..................................Decrease...........(Decrease)
..............................Over 3Q 2010....From 3Q 2010
......................................(millions of dollars)
BB&T............................520.....................193...........269%
US Bancorp..................476.....................588.............81%
Regions Financial.........405.....................487............83%
Fifth Third Bancorp......370.....................354...........105%
SunTrust Banks............268.......................88...........305%
Capital One Fincl..........245.......................82...........299%
PNC Financial..............225......................189...........119%
Zions Bancorp.............170......................247............69%
Synovus Financial.......137......................218............63%
Key Corp.......................84.......................34...........247%
Comerica......................84.......................60...........140%
Huntington Bancshares.75.......................51...........147%
M&T Bank......................35.....................(22)...........159%
Hudson City Bancorp....25.....................(69)............36%
BOK Financial................20......................35.............57%
NYCommunityBancorp.14.....................(28).............50%
Northern Trust..............12.......................16.............75%
SVB Financial................10.......................26.............38%
Total all 18...............3,175.................2,549...........125%
So the 99%ers, including US small businesses, who these 18 Big US Banks are making much of their profits from, have their financial status mostly deteriorate substantially in the past year, and these 18 Big Banks react to this by making just the opposite assessment, by reducing their Total Loan Loss Charges on their books by $3.2 bil.
Something just doesn't seem right here. The Occupy Movement all throughout the country, and all of their 99% supporters, including many small businesses, are spot on. The deck is stacked against them, the Big Corps are continually dealing from the bottom of the deck, and the US Government, especially the US Congressional Republicans, facilitate this patently unfair process, which is destroying the fabric of the US Democracy.
