Wells Fargo vs Bank of America
The Perfect Match: Wells Fargo vs. Bank of America The banking industry is highly competitive. The financial services industry has been around for hundreds of years. Wells Fargo has many competitors itself. In this paper, I will be doing a comparison of Wells Fargo & Company (WFC) and one of its biggest competitors, Bank of America Corporation (BAC). By analyzing looking at the financial ratios, one can see whether the company is successful or not. In the following, I will try to analyze and make a comparison of Wells Fargo’s and Bank of America’s recent performance in growth, income, and efficiency. Using a these criteria, I will determine which bank is the better buy according my analysis. My analysis of WFC & BAC’s performances will include a discussion of…
Background Information Before analyzing and comparing both banks, one needs to know a little about the banks themselves. We already learned a little bit about Wells Fargo from the first paper. Now let’s look at Bank of America Corp. BAC is one of Wells Fargo’s major nationwide competitors. BAC, the nation’s largest bank and financial holding company, has 6,238 offices within the U.S. Bank of America had about 288,000 employees in its annual report for 2010. The CEO at Bank of America is Brian Moynihan.
Analysis & Comparisons of WFC & BAC The following is a table showing an overview of Wells Fargo’s financial performance and percent change compared to Bank of America, for the years 2009 and 2010. Table 1: Financial Highlights of Wells Fargo & Bank of America | | | | *Year Ended December 31, | | | | | Wells Fargo (WFC) | Bank of America (BAC) | | *2009 | *2010 | % Change | *2009 | *2010 | % Change | Total Assets | $1.24 trillion | $1.26 trillion | 1% | $2.23 trillion | $2.26 trillion | 2% | Total Deposits | $824.0 billion | $847.9 billion | 3 | $991.6 billion | $1.0 trillion | 1 | Total Loans | $782.8 billion | $757.3 billion | (3) | $900.1 billion | $940.4
Background Information Before analyzing and comparing both banks, one needs to know a little about the banks themselves. We already learned a little bit about Wells Fargo from the first paper. Now let’s look at Bank of America Corp. BAC is one of Wells Fargo’s major nationwide competitors. BAC, the nation’s largest bank and financial holding company, has 6,238 offices within the U.S. Bank of America had about 288,000 employees in its annual report for 2010. The CEO at Bank of America is Brian Moynihan.
Analysis & Comparisons of WFC & BAC The following is a table showing an overview of Wells Fargo’s financial performance and percent change compared to Bank of America, for the years 2009 and 2010. Table 1: Financial Highlights of Wells Fargo & Bank of America | | | | *Year Ended December 31, | | | | | Wells Fargo (WFC) | Bank of America (BAC) | | *2009 | *2010 | % Change | *2009 | *2010 | % Change | Total Assets | $1.24 trillion | $1.26 trillion | 1% | $2.23 trillion | $2.26 trillion | 2% | Total Deposits | $824.0 billion | $847.9 billion | 3 | $991.6 billion | $1.0 trillion | 1 | Total Loans | $782.8 billion | $757.3 billion | (3) | $900.1 billion | $940.4
Cited: Bank of America’s 2010 annual report http://media.corporate-ir.net/media_files/irol/71/71595/reports/2010_AR.pdf “Wells Fargo & Company Annual Report 2010.” Wellsfargo. Wells Fargo, 2011. Web / Print. 15 Mar.2011 https://www.wellsfargo.com/downloads/pdf/invest_relations/wf2010annnualreport.pdf http://www.investopedia.com/features/industryhandbook/banking.asp http://financialcontrols.blogspot.com/2011/01/well-fargo-reports-improved-earnings-in.html http://investor.bankofamerica.com/phoenix.zhtml?c=71595&p=irol-reportsannual http://biz.yahoo.com/p/4conameu.html (yahoo financial sector)