Bank of America Corp (BAC), Citigroup Inc. (C), Wells Fargo & Co (WFC): The Banking Giant Is Still Riding Strong

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Yet the bank’s cost cutting efforts have also resulted in the closing of numerous bank branches in hopes of leading more of its customers online to conduct transactions – a much less costly alternative for Bank of America in terms of overhead expenses.

Citigroup Inc. (NYSE:C) has also been on a cost cutting binge recently – yet without nearly as much success as Bank of America in terms of share price or dividend payment to its shareholders. Citi’s first quarter 2013 revenues were up 3% from the prior year – which is a positive sign – as is its commitment to paying solid and continuous shareholder dividends in the future. One catalyst that could help to boost Citi’s investor earnings is the continued purchase of Citigroup Inc. (NYSE:C) shares in at least 9 prominent hedge funds.

Prior to being given the green light to increase its dividend, though, Citi will still need to obtain regulatory permission – a feat that the company was unable to secure in 2012. In hopes of protecting against any similar potential issues this year, Citi has built up a strong amount of capital reserves.

The bottom line

Throughout the past few years, several large banking institutions have essentially “rebuilt” their capital position – many from the levels that were seen prior to the recession of 2008-2009. This has been achieved in large part through improved earnings from lower credit costs. Yet with Wells Fargo & Co (NYSE:WFC), record profit in 2012, coupled with its 19% rise in 2012 net income, shares of this bank’s stock could certainly prove to be a very profitable holding in terms of both income and growth in the short- and long-term time horizon.

The article Wells Fargo Is Still Riding Strong originally appeared on Fool.com and is written by Nauman Aly.

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