Despite muted economic forecasts for both the US and Canada, North America’s largest banks by Tier 1 capital have performed well and almost all of them have expanded their capital positions.
JPMorgan leads the pack for the fourth consecutive year, with $200.48bn Tier 1 capital, 7.42% higher than 2015's ranking. This has helped improve its Tier 1 capital-to-assets ratio, a measure of soundness, which is now at 8.52%. In 2015’s ranking it was 7.25%. Almost all the largest US players kept a firm grip on their place in the rankings. Only a few places swapped in the lower half of the regional table, and the entrance of M&T Bank Corporation in 24th place displaced KeyCorp in this year’s list.
Royal Bank of Canada also retained its position in the table and remains Canada’s largest lender, with Tier 1 capital worth $38.58bn.
LegacyTexas Group is the most improved North American bank, with an impressive 284.93% Tier 1 capital expansion. It is followed by Simmons First National Corporation, which doubled its Tier 1 capital during the last financial year, and Sterling Bancorp, with 73.48% growth.
American Express has displayed a striking 43.41% return on capital ratio, which is nevertheless lower than the 49.45% it recorded in the 2015 rankings.
The US produced an impressive 16 new entrants to the Top 1000 ranking in 2016, with Michigan’s Flagstar Bancorp leading the way, coming in in 540th position.
