Research Quarterly: US Financial Institutions – Financial & Regulatory Data

The U.S. financial system, with over $21 trillion in assets[1], is a large, complex system set up to serve the needs of individuals, corporations, and governments of all sizes. Since the global financial crisis, financial institutions and regulators have worked to shore up the strength and resiliency of the system. Today’s U.S. financial system is more liquid and better capitalized than ever, positioning it to weather future shocks.

This quarterly report provides a snapshot of the current landscape, looking at select income statement, balance sheet and regulatory ratio statistics and trends.

Executive Summary

We highlight the following trends: (aggregate of all CCAR firms, unless indicated)

  • Income Statement (YTD 2021)
    • Total revenue $180.2 billion, +15.3% Y/Y
    • Operating expenses $113.6 billion, +11.6% Y/Y
    • Net income available to common $62.2 billion, +320.0% Y/Y
  • Balance Sheet (1Q21)[2]
    • Total assets $17.8 trillion, +9.5% Y/Y
    • Net loans $5.9 trillion, -7.1% Y/Y
    • Deposits $11.3 billion, +15.1% Y/Y
    • As compared to 2009
      • Liquidity 18.2%, +9.3 pps since 2009
      • Non-performing loans (NPLs)/Total Loans 0.7%, -2.6 pps since 2009
      • Net charge-offs (NCOs) 67.2%, -272.6 pps since 2009
  • Regulatory Ratios (1Q21)[3]
    • Common Equity Tier 1 (CET1) Capital 12.1%; +3.5 pps since 2009, +1.6 pps above maximum requirement
    • Tier 1 (T1) Capital 13.7%; +1.8 pps since 2009, +7.7 pps above requirement
    • Data for G-SIBs only
      • Supplemental Leverage Ratio (SLR) 6.9%, +0.9 pps above maximum requirement
      • Liquidity Coverage Ratio (LCR) 118.6%, +18.6 pps above maximum requirement
      • Total Loss Absorbing Capital (TLAC) as % of RWA 30.4%, +12.4 pps above requirement

[1] Source: FRED Economic Data (total assets for all commercial banks as of April 21, 2021)

[2] Net loans = loans – allowance for loan loss. Liquidity = (cash + deposits at banks) / total assets

[3] Levels may fluctuate with changes in regulations/taxes/laws. Basel III minimums: CET1 = minimum 7.0%, G-SIB max 10.5%; T1 = 6.0%; SLR = B3 minimum 3.0%, U.S. bank holding company 5.0%, U.S. bank 6.0%; LCR = 100.0%; TLAC/RWA = 18.0%. RWA = risk-weighted assets

Select Charts

Download the full report for all data, tables and the chart book.

 

About the Report

SIFMA Research Quarterly Reports contain data and statistics on U.S. markets.

This report analyzes publicly available financial and regulatory requirement metrics for CCAR firms, and may serve as a proxy for the state of the financial services industry. It includes information on income statement metrics, balance sheet categories and regulatory ratios.

Other quarterly reports include an equity and related quarterly (cash equities, ETFs, listed options and capital formation) and two fixed income quarterlies (issuance and trading; outstanding). These reports and corresponding databases can be found at www.sifma.org/research.

Authors

SIFMA Research

  • Katie Kolchin, CFA, Director of Research
  • Justyna Podziemska
  • Ali Mostafa