Bank of New York Mellon
Like Yahoo!, Bank of New York Mellon (BK - Get Report) isn't what it first appears to be. That's because it isn't a conventional bank. Instead, the firm is one of the world's largest fund custodians and asset managers, two investment-driven businesses that operate a world apart from the lending at regular banks.
As traditional banks work on growing their service income, BNY Mellon is already there. The firm's positioning as one of the biggest custodians in the world gives it cost advantages and lowered counterparty risk that makes it more attractive than most of the rivals it comes up against. As the firm grows its focus on asset management, it should be able to collect more cash for every dollar on deposit than it currently can.
Like Goldman Sachs, BNY Mellon is basically a leveraged bet on the stock market. After all, as the assets in BK's accounts grow, so too do the custody, trust, and management fees that it's able to charge. Profitability is exemplary in BK, ringing in at more than 26% in the last quarter.
For investors looking for a different kind of "big bank" exposure, it's hard to beat this Rocket Stock in 2014.