This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bank Profit Engine? Bad Loans

NEW YORK (TheStreet) -- U.S. banks saw shrinking revenues over the past year, but earned money mainly due to improvements in their portfolios of troubled loans, according to a report Friday from Standard & Poor's.

The report reaches identical conclusions to one from the Federal Deposit Insurance Corp. earlier this week , and, indeed, draws from much of the same data, but an analysis by the TheStreet using Bloomberg data shows how the trend plays out with banks in the S&P 500.

Indeed, according to the data, while 14 of the 19 banks in the S&P 500 have posted positive earnings numbers over the past 12 months, the same number saw revenues shrink during the past year.

The only banks that saw revenues grow over the past year are U.S. Bancorp (USB), where revenues grew by 5.74%, People's United Financial (PBCT), which saw 4.84% revenue growth, Citigroup (C), where revenues grew by 3.2%, BB&T Corp (BBT), where they grew by 2.35% and M&T Bank (MTB) where revenues grew by just 0.32%.

Revenues shrank by double digit percentages at five banks, with First Horizon National Corp. (FHN) showing an 18.65% decline, Zions Bancorp (ZION) revenues falling by 17.05%, Comerica (CMA) revenues dropping by 16.26%, Bank of America (BAC) revenues falling by 11.82% and Regions Financial (RF) showing a drop of 10.40%.

S&P called first quarter revenue growth "disappointing," noting it fell 8% annualized quarter-on-quarter, and 3% year-on-year.

The year-over-year drop in revenues was just the second time in 27 years of available data, S&P wrote, attributing the drop to declining falling net interest income and noninterest income at the largest banks. S&P stated that operating expenses remained in check overall, despite a "seasonal acceleration" in salaries.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs