Bank of America Corp (BAC), Citigroup Inc. (C), Wells Fargo & Co (WFC): The Banking Giant Is Still Riding Strong

Yet the bank’s cost cutting efforts have also resulted in the closing of numerous bank branches in hopes of leading more of its customers online to conduct transactions – a much less costly alternative for Bank of America in terms of overhead expenses.

Citigroup Inc. (NYSE:C) has also been on a cost cutting binge recently – yet without nearly as much success as Bank of America in terms of share price or dividend payment to its shareholders. Citi’s first quarter 2013 revenues were up 3% from the prior year – which is a positive sign – as is its commitment to paying solid and continuous shareholder dividends in the future. One catalyst that could help to boost Citi’s investor earnings is the continued purchase of Citigroup Inc. (NYSE:C) shares in at least 9 prominent hedge funds.

Prior to being given the green light to increase its dividend, though, Citi will still need to obtain regulatory permission – a feat that the company was unable to secure in 2012. In hopes of protecting against any similar potential issues this year, Citi has built up a strong amount of capital reserves.

The bottom line

Throughout the past few years, several large banking institutions have essentially “rebuilt” their capital position – many from the levels that were seen prior to the recession of 2008-2009. This has been achieved in large part through improved earnings from lower credit costs. Yet with Wells Fargo & Co (NYSE:WFC), record profit in 2012, coupled with its 19% rise in 2012 net income, shares of this bank’s stock could certainly prove to be a very profitable holding in terms of both income and growth in the short- and long-term time horizon.

The article Wells Fargo Is Still Riding Strong originally appeared on Fool.com and is written by Nauman Aly.

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