articles Ratings /ratings/en/research/articles/191011-comparative-statistics-u-s-banks-october-2019-11192938 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *

* Required

In This List
COMMENTS

Comparative Statistics: U.S. Banks (October 2019)


Comparative Statistics: U.S. Banks (October 2019)

S&P Global Ratings' bank ratings criteria framework outlines the elements of an issuer's credit profile and how we assess these elements to determine the rating on an issuer. Although we consider many quantitative and qualitative factors, the following charts highlight some of the key ratios we consider in our assessments and are meant to provide additional transparency. The glossary explains the concepts and calculations of the reported metrics and ratios.

Chart 1

image

Chart 2

image

Chart 3

image

Chart 4

image

Chart 5

image

Chart 6

image

Chart 7

image

Chart 8

image

Glossary

For more definitions, please refer to "Quantitative Metrics For Rating Banks Globally: Methodology And Assumptions," published on July 17, 2013.

BLAST ratio (x): Broad liquid assets divided by short-term wholesale funding

Broad liquid assets.   The sum of cash, short-term interbank loans and reverse repurchase agreements and securities borrowing with banks maturing within one year, short-term reverse repurchase agreements and securities borrowing with nonbanks net of haircut maturing within one year, and securities holdings net of haircut less restricted cash.

Short-term wholesale funding.   The sum of short-term interbank and debt market funding maturing within one year, repurchase agreements and securities lending, acceptances, and nonderivative trading liabilities.

Customer loans-to-deposit ratio (%): Customer loans (net) divided by customer deposits

Net customer loans.   Customer loans (gross) net of loan loss reserves and net of reverse repurchase agreements and net of securities borrowing.

Customer deposits.   Customer deposits net of repurchase agreements and net of securities lending.

Efficiency ratio (%): Noninterest expenses divided by operating revenue

Noninterest expenses.   Includes personnel expenses, premises, other noninterest expense, depreciation and amortization, brokerage clearing and exchange fees, marketing costs, and commission expenses.

Operating revenue.   Includes net interest income plus operating noninterest income.

Gross NPL ratio (%): Gross nonperforming assets/customer loans + other real estate owned

Gross nonperforming assets.   Sum of nonaccrual loans, restructured loans, repossessed real estates owned, and loans over 90 days past due but accruing.

Customer loans + OREO.   Loans to nonbank customers net of unearned income and net of reserves + other real estate owned.

Loan growth: Change in gross customer loans

Customer loans (gross).   Loans to nonbank customers before reserves but net of unearned income.

Net interest margin (%): Net interest income to average earning assets

Net interest income.   Interest income net of interest expense. May include dividend income and loan fees according to convention of the country.

Earning assets.   Interbank deposits, reverse repos, securities, gross loans and leases.

Noninterest income to operating revenues (%)

Noninterest income.   Total noninterest revenue.

Operating revenues.   All revenues net of interest expense and nonrecurring income.

Pretax profit margin: pretax profit divided by operating revenue

Return on average assets (%): Net income divided by average assets

Risk-adjusted capital ratio (%): Total adjusted capital/risk-weighted assets

Adjusted common equity.   Common equity and equity minority interests minus revaluation reserves, goodwill, other nonservicing intangibles, interest-only strips (tax effected), equity in unconsolidated subsidiaries, and tax loss carryforwards, or other deferred taxes not permitted by regulators in the U.S. We exclude all hybrid capital instruments from adjusted common equity.

Total adjusted capital.   An enlarged and globally consistent definition of the amount of capital a bank has available to absorb losses. Total adjusted capital (TAC) includes hybrid capital components that are, in our view, of somewhat weaker quality than those included in adjusted common equity, our measure of consolidated core capital. This reflects our view of the equity content of hybrid capital instruments and the equity-like characteristics of preferred stock.

Risk-weighted assets.   We calculate risk-weighted assets (RWA) before diversification by adding the risk-weighted exposures for credit risk, market risk, and operational risk.

Stable funding ratio (SFR) (%): Available stable funding divided by stable funding needs

Available stable funding.   The sum of total equity net of intangibles, customer deposits, and long-term interbank and debt market funding including hybrid instruments with minimal equity content maturing after one year.

Stable funding needs.   The sum of customer loans (net), short-term reverse repurchase agreements, and securities borrowing with nonbanks maturing within one year net of haircut, long-term interbank loans, and reverse repurchase agreements; and securities borrowing maturing after one year, securities holdings net of haircut, restricted cash, all other assets net of haircut, and off-balance-sheet credit equivalents net of haircut.

Total payout ratio: the sum of common dividends and share repurchases divided by net income minus preferred dividends

Related Research

  • The Spike In U.S. Repo Rates Reflects Technical Factors, A Smaller Fed Balance Sheet, And Tighter Bank Regulation, Oct. 2, 2019
  • Rating Component Scores For U.S., Canadian, And Bermudian Banks (September 2019), Sept. 30, 2019
  • How To Say Goodbye To LIBOR Without Creating Market Chaos, Sept. 23, 2019
  • Industry Report Card: U.S. Regional Banks' Second-Quarter Profits Held Up Despite Declining Net Interest Margins, Aug. 14, 2019
  • Macroeconomic And Geopolitical Headwinds Led To Mixed Second-Quarter Results, But Large U.S. Banks Should Navigate Smoothly Through The Ups And Downs Of 2019, Aug. 13, 2019
  • Comparative Statistics: U.S. Banks (April 2019), April 11, 2019
  • Optimism And Growth Aspirations Are Fueling An Increase In U.S. Bank Mergers And Acquisitions Despite A Maturing Credit Cycle, Oct. 15, 2018
  • Funding Has Improved For Most U.S. Banks In Recent Years, But Outliers Deserve Further Consideration, Jan. 23, 2017

This report does not constitute a rating action.

Primary Credit Analyst:E.Robert Hansen, CFA, New York (1) 212-438-7402;
robert.hansen@spglobal.com
Secondary Contact:Jacob Dabrowski, New York;
jacob.dabrowski@spglobal.com

No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.

Any Passwords/user IDs issued by S&P to users are single user-dedicated and may ONLY be used by the individual to whom they have been assigned. No sharing of passwords/user IDs and no simultaneous access via the same password/user ID is permitted. To reprint, translate, or use the data or information other than as provided herein, contact S&P Global Ratings, Client Services, 55 Water Street, New York, NY 10041; (1) 212-438-7280 or by e-mail to: research_request@spglobal.com.


Register with S&P Global Ratings

Register now to access exclusive content, events, tools, and more.

Go Back