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TheStreet Open House

Big Banks Are Beating Earnings Estimates

Stocks in this article: BAC C JPM WFC CFR NYCB RF ZION ^BKX

NEW YORK ( TheStreet) -- Given the free money available from the Federal Reserve it is not surprising that only two of the 24 banks in the PHLX KBW Banking Index did not beat their second quarter earnings estimates. The four 'too big to fail' money center banks are in this banking index and as I expected each had the accounting flexibility to easily beat Wall Street estimates.

When I compare assets among the 'too big to fail" banks at the end of 2010 to the assets at the end of first quarter of 2013 three of the big four are bigger.



The table above shows that at the end of 2010 The FDIC Quarterly Banking Profile showed that the four TBTF banks accounted for 43.3% of the total assets in the banking system at $5.77 trillion. At the end of the first quarter 2013 these four banks added 10.1% to this for a total of $6.35 trillion, or 44.0% of all assets.

JP Morgan (JPM - Get Report) ($56.16) was the biggest of the big at the end of 2010 with $1.76 trillion in assets or 13.2% of the total assets in the banking system. Since then to the end of the first quarter 2013 this bank increased assets by 17.7% to $2.07 trillion or 14.4% of the total assets in the banking system.

Bank of America (BAC - Get Report) was the second biggest bank at the end of 2010 with $1.54 trillion in assets or 11.6% of the total assets in the banking system. At the end of the first quarter of 2013, Bank of America continues to be in second place increasing assets by 6.3% to $1.64 trillion or 11.4% of the total assets in the banking system.

Citigroup (C - Get Report) was the third biggest at the end of 2010 with $1.31 trillion in assets or 9.8% of the total assets in the banking system. At the end of the first quarter 2013 Citi slipped into fourth place with a 0.24% decline in assets, and 9.1% of the total assets in the banking system.

Wells Fargo (WFC - Get Report) was the fourth biggest at the end of 2010 with $1.15 trillion in assets or 8.7% of the total assets in the banking system. At the end of the first quarter 2013 Wells jumped over Citi into third place with a 15.4% rise in assets to $1.33 trillion or 9.2% of the total assets in the banking system.

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