Return on assets is Matt Koppenheffer's favorite metric for evaluating banks. The top three in this regard are US Bancorp at 1.6%, Wells Fargo at 1.5% and M&T at 1.4%. Average for all banks: 1%. The bottom two banks were Citigroup at 0.5% and Bank of America at 0.3%. It's hard to say what's going to happen with Citi and Bank of America since they are still working through their various business problems. On the other hand, the top three banks are great banks with great management teams. They got through the last recession relatively unscathed and are in a position to continue growing.
Which three banks have had the best return on assets over the last year and should you own shares?
About the Author
Matt is the head of the Coverage Team for The Motely Fool's premium products. Previously, he's been . Matt is a heavy user of AI tools and is working on harnessing them to help Fool members. Previously, Matt was GM of Motley Fool Ascent, led The Motley Fool Deutschland, has been an investor on various Fool services, and co-hosted the podcast "Where the Money Is". He also co-authored the book The Astonishing Collapse of MF Global. Matt started his career in San Francisco as a technology-focused investment banker and also worked at a $15 billion private equity company. When he's thinking about how to make Fools smarter, happier, and richer, you can usually find Matt running trails or making a mess in the kitchen. He's a graduate of the University of Pennsylvania, but is a lifelong fan of Penn State football.
