Compare The Growth Rates In Assets And Deposits Of Several Banks

In order to compare the growth rate in assets and deposits of below mentioned three banks, such as:

• Regions Financial Corporations: Regions Financial Corporations is one of the member of the S&P 500 Index. It is also one of the country’s biggest service providers of consumer & commercial banking.  Its portfolio includes several services such as wealth management, mortgage (basically residential loan servicers), and insurance products & services (all personal as well as commercial insurance which covers property, casualty, life, health & accident.  Regions Financial Corporations has a wide network in the south, Midwest & Texas with approximately 4.4 million customers with the help of its subsidiary.  Regions Financial Corporations has nearly operating 1,500 banking offices and 1,900 ATMs.

• PNC Financial Services Group: PNC Financial Services Group is one of the member of the S&P 500 Index. It is also one of the country’s biggest service providers of consumer & commercial banking.  Its portfolio includes several services such as wealth management (Tailored investment, trust and estate administration),Hawthorn (Country’s largest multi-family offices), mortgage (basically residential loan servicers), and insurance products & services (all personal as well as commercial insurance which covers property, casualty, life, health & accident.  PNC Financial Services Group has a wide network in the District of Columbia with approximately 8 million customers with the help of its subsidiary.  PNC Financial Services Group has provide a great customer experience through its branches, care center, ATMs, Online and mobile solutions.

• SunTrust Bank: SunTrust Bank is a purpose driven company. Its main and significant purpose is to improve the way to financial well-being for the people, businesses, and its communities. Its headquarter is located in Atlanta. The company has two business segment: Consumer and wholesale. Its portfolio includes several services such as mortgage, personal checking, credit cards, personal loans, investments & retirement, wealth management.  

A) ANALYSIS OF DATA:

By analysis the financials of Regions Financial Corporations of last three years 2017, 2016 and 2015:

• Income from continuing operations available to common shareholders in year 2015 - $1,011 million, in year 2016 -  $1,094 million, in year 2017 - $1,193 million. There is a growth of 7.59% in year 2016 in compare to year 2015 and again there is a growth of 8.30% in year 2017 in compare to year 2016.
• Net income available to common shareholders in year 2015 - $998 million, in year 2016 - $1,099 million, in year 2017 - $1,199 million. There is a growth of 9.19% in year 2016 in compare to year 2015 and again there is a growth of 8.34% in year 2017 in compare to year 2016.
• Loans, net of unearned income in year 2015 - $81,162 million, in year 2016 - $80,095 million, in year 2017 - $79, 947 million. There is a decline of 1.33% in year 2016 in compare to year 2015 and again there is a decline of 0.19% in year 2017 in compare to year 2016.
• Assets in year 2015 - $1,26,050 million, in year 2016 - $1,25,968 million, in year 2017 - $1,24, 294 million. There is a decline of 0.07% in year 2016 in compare to year 2015 and again there is a decline of 1.35% in year 2017 in compare to year 2016.
• Deposits in year 2015 - $98,430 million, in year 2016 - $99,035 million, in year 2017 - $96,889 million. There is anincrease of 0.61% in year 2016 in compare to year 2015 but then there is a decline of 2.21% in year 2017 in compare to year 2016.
• Long term debt in year 2015 - $8,349 million, in year 2017 - $7,763 million, in year 2016 - $8,132 million. There is a decline of 7.55% in year 2016 in compare to year 2015 but then there is anincrease of 4.54% in year 2017 in compare to year 2016.
• Stockholder’s equity in year 2015 - $16,844 million, in year 2016 - $16,664 million, in year 2017 - $16,192 million. There is a decline of 1.08% in year 2016 in compare to year 2015 but again there is a decline of 2.92% in year 2017 in compare to year 2016.

Apart from above mentioned details there is also a decline in tangible common stakeholders’ equity to tangible assets year on year. There is a decline of 0.14% in year 2016 in compare to year 2015 but again there is a decline of 0.28% in year 2017 in compare to year 2016.

By analysis the financials of PNC Financial Services Group of last three years 2017, 2016 and 2015:

• Loans in year 2015 - $2,06,696 million, in year 2016 - $2,10,833 million, in year 2017 - $2,20,458 million. There is anincrease of 1.96% in year 2016 in compare to year 2015 and again there is anincrease of 4.37% in year 2017 in compare to year 2016.
• Assets in year 2015 - $3,58,493 million, in year 2016 - $3,66,380 million, in year 2017 - $3,80,768 million. There is an increase of 2.15% in year 2016 in compare to year 2015 and again there is an increase of 3.78% in year 2017 in compare to year 2016.
• Deposits in year 2015 - $2,49,002 million, in year 2016 - $2,57,164 million, in year 2017 - $2,65,053 million. There is an increase of 3.17% in year 2016 in compare to year 2015 and again there is an increase of 2.98% in year 2017 in compare to year 2016.
• Stockholder’s equity in year 2015 - $44,710 million, in year 2016 - $45,699 million, in year 2017 - $47,513 million. There is anincrease of 2.16% in year 2016 in compare to year 2015 but again there is anincrease of 3.82% in year 2017 in compare to year 2016.

Apart from above mentioned details, there is mixed trend in average return of assets. Return on average assets in year 2015 – 1.17, in year 2016 – 1.10, in year 2017 – 1.45. There is a decline of 0.07 in year 2016 in compare to year 2015 but then there is an increase of 0.35 in year 2017 in compare to year 2016.

By analysis the financials of SunTrust Bank of the year 2017 & 2016:

• Assets in year 2016 - $1,99,004 million, in year 2017 - $2,04,931 million. There is an increase of 2.89% in year 2017 in compare to year 2016.
• Deposits in year 2016 - $1,190 million, in year 2017 - $1,615 million. There is an increase of 26.32% in year 2017 in compare to year 2016.

Apart from above mentioned details, there is a increase trend in average return of assets. Return on average assets in year 2016 – 0.94, in year 2017 – 1.11. There is an increase of 18% in year 2017 in compare to year 2016.

B) CONCLUSION:

So, by comparing the financials of all the three company has mentioned above there is a decline in assets growth in Regions Financial Corporations in both year 2016 and 2017 but there is a increase in assets growth in PNC Financial Services Group in both year 2016 and 2017. In the same way there is a increase in assets growth in SunTrust Bank in year 2017. (figures has already shared above). 

And for the growth rate in deposits, there is a increase in deposits in Regions Financial Corporations in year 2016 but there is decline in deposit growth in year 2017. Whereas there is an increase in deposit growth rate in PNC Financial Services Group in both year 2016 and 2017. In the same way there is a increase in deposit growth in SunTrust Bank in year 2017. (figures has already shared above).

By analysis the financials of all three above mentioned company, PNC Financial Services Group seems to be growing fastest as there is an increasing trends in all the areas such as assets, deposits and stakeholders’ equity in both the year 2016 and 2017 in compare to two others banks.

PNC Financial Services Group would be recommended as a possible takeover target as there is favourable trends for PNC Financial Services Group in compare to other two banks.

C) REFERENCES:

1. RegionsBank. (2018). Banking Services: Checking, Savings, Mortgage | Regions. [online] Available at: https://www.regions.com/personal-banking [Accessed 30 Aug. 2018].
2. PNC. (2018). PNC Bank. [online] Available at: https://www.pnc.com/en/personal-banking.html [Accessed 30 Aug. 2018].
3. SunTrust. (2018). SunTrust Bank | Personal, Mortgage and Small Business Banking. [online] Available at: https://www.suntrust.com/ [Accessed 30 Aug. 2018].
4. Ffiec.gov. (2018). Nic Home. [online] Available at: https://www.ffiec.gov/nic/ [Accessed 30 Aug. 2018].
5. S2.q4cdn.com. (2018). [online] Available at: http://s2.q4cdn.com/438932305/files/doc_news/2018/
   Earnings-Release_vFINAL.pdf [Accessed 30 Aug. 2018].
6. Nasdaqomx.mobular.net. (2018). PNC Financial Services 2017 Annual Report. [online] Available at: http://nasdaqomx.mobular.net/nasdaqomx/7/3543/
   5051/ [Accessed 30 Aug. 2018].
7. Corporatereport.com. (2018). Regions 2017 Annual Review.
   [online] Available at:
   http://www.corporatereport.com/
   Regions2017AnnualReview/financial.php#forwardInfo [Accessed 30 Aug. 2018].