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Research Quarterly: US Financial Institutions – Financial & Regulatory Data

The U.S. financial system, with over $23 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. Using the Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR) firms as a proxy for the system, this quarterly report provides a snapshot of the current landscape. We analyze select income statement, balance sheet and regulatory ratio statistics and trends, which show this group of firms has much higher capital levels and healthier balance sheets than during the global financial crisis. We highlight the following trends:

  • Income Statement (YTD23)
    • Total revenue $202.7 billion, +13.6% Y/Y
    • Operating expenses $126.7 billion, +6.7% Y/Y
    • Net income available to common $48.2 billion, +9.9% Y/Y
  • Balance Sheet (1Q23)
    • Total assets $18.9 trillion, -0.3% Y/Y
    • Net loans[2] $6.9 trillion, +5.5% Y/Y
    • Deposits $11.8 trillion, -4.4% Y/Y
    • As compared to 2009
      • Liquidity[3] 15.5%, +6.7 pps since 2009
      • Non-performing loans (NPLs)/Total Loans 0.5%, -2.8 pps since 2009
      • Net charge-offs (NCOs) 46.6%, -293.2 pps since 2009
  • Regulatory Ratios (1Q23)[4]
    • Common Equity Tier 1 (CET1) Capital 11.1%; +2.5 pps since 2009, +0.6 pps above maximum requirement
    • Tier 1 (T1) Capital 12.6%; +0.8 pps since 2009, +6.6 pps above requirement
    • Data for G-SIBs only
      • Supplemental Leverage Ratio (SLR) 6.1%, +0.1 pps above maximum requirement
      • Liquidity Coverage Ratio (LCR) 119.9%, +19.9 pps above maximum requirement
      • Total Loss Absorbing Capital (TLAC) as % of RWA 32.8%, +14.8 pps above requirement

[1] Source: FRED Economic Data (total assets for all commercial banks as of March 31, 2023)

[2] Net loans = loans – allowance for loan loss.

[3] Liquidity = (cash + deposits at banks) / total assets

[4] 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

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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
  • Dan Song

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