This strategy stands in stark contrast to rival bank Wells Fargo & Co (NYSE:WFC)‘s . Per Wells’ website, the company only has three international locations, all of which are in Western Europe. In its 2012 annual report, the bank states that it offers services in 37 countries; this number is misleading, however, because the services it provides are geared toward assisting U.S. customers with international operations. Wells is focused on the domestic business through and through.
Bank of America Corp (NYSE:BAC) has a strong global presence, but as CEO Brian Moynihan continues to reshape the company in the aftermath of the financial crisis, its focus on global business is decreasing.
In 2012, the bank’s Global Banking, Global Markets, and Global Wealth and Investment Management segments contributed $47.2 billion to company revenues, or about 56%.However, since Moynihan took the company’s helm in 2010, the bank has sold positions in lenders in Brazil, China, and Mexico, as well as sizable consumer loan portfolios from around the world (a more complete list can be seen here).
The largest U.S. bank, JPMorgan Chase & Co. (NYSE:JPM), is better-positioned than Wells or Bank of America Corp (NYSE:BAC), but still lags Citi. In contrast to Wells and Bank of America Corp (NYSE:BAC), JPMorgan CEO Jamie Dimon recently stated that he aims to grow the bank abroad, but prefers stable organic growth instead of more aggressive growth through M&A. As such, Citi’s lead in the global market should remain intact for the foreseeable future.
Well-positioned for the long term The World Bank’s report takes a very long view, forecasting trends though 2030. And while long-term forecasts are at best educated guesses, investors should still consider Citi, the best-positioned U.S. megabank to take advantage of continued globalization. Look to growth in Citi’s Global Consumer Banking unit to outpace the broader industry for confirmation of this trend.
The article The Best U.S. Bank Stock for the Next 20 Years originally appeared on Fool.com.
Fool contributor Jay Jenkins has no position in any stocks mentioned. The Motley Fool recommends Bank of America Corp (NYSE:BAC) and Wells Fargo & Co (NYSE:WFC). The Motley Fool owns shares of Bank of America Corp (NYSE:BAC), Citigroup Inc (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), and Wells Fargo & Co (NYSE:WFC).
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