Of the Major Four Banks, Wells Fargo is Doing the Best

by on Wells Fargo Foreclosures

Wells Fargo Bank Agency

Over the last few years the real estate market in the United States has been incredibly unstable, marked with high foreclosure rates and low home prices. In the middle of the real estate market crisis are major lenders, who most believe are mainly to blame for the crash.

The four major lenders within the U.S. are Wells Fargo, Bank of America, Citigroup, and JPMorgan Chase. Each of these key lenders took hits as a result of unethical actions revolving around foreclosures, which resulted in foreclosure settlement agreements that encouraged lenders to pursue options outside of foreclosures for struggling homeowners. These settlement agreements also compensated those who were victims of wrongful lender actions throughout 2009 and 2010.

Today, after the settlement agreements have been reached, which of these four major banks is doing the best? According to just about everyone, Wells Fargo is doing significantly better than the other major banks in just about every aspect.

Wells Fargo's Revenue Growth

One of the best indicators of any business is looking at revenue growth. From 2011 to 2012, Wells Fargo had a revenue growth of 6.3%, which is huge in comparison to the numbers of the three other major lenders.

Bank of America’s revenue growth was -10.8% with Citigroup and JPMorgan Chase coming in at -10.4% and -0.2%, respectively. These numbers show that out of all four major lenders, only Wells Fargo experienced revenue growth from 2011 to 2012.

Furthermore, Wells Fargo did better than Bank of America in everything from loan origination to return on assets and equity.

In short, Wells Fargo is doing rather well in comparison to the other major lenders after the foreclosure settlement agreements throughout the last few years.

Wells Fargo's New, Expensive Project

In addition to revenue growth and other positive metric performances, you can also determine a business’s economic stability and confidence often in how it spends money. For example, Wells Fargo has recently committed $100 million to a project that will expand its Des Moines, Iowa operations. The expansion is indicative of the bank’s confidence in their future, with the new building providing space for approximately 180,000 workers – some of which will be future hires.

Taking all the information together, Wells Fargo is doing well (as the numbers indicate) and has confidence in its future chances of success as well as the market’s ability to quickly recovery.

If you are wondering which bank is doing the best after foreclosure settlement agreements, then turn to Wells Fargo. Despite the turbulent waters of the last few years this lender is definitely holding its head above water and is able to bring in positive revenue growth while its major competitors continue to struggle.

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