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Bank of America vs Wells Fargo vs FirstRand vs Standard Bank
Date: 29 Aug 2018 Category: Stock Market |
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We take a look at the share price performance of two of the United States biggest banks listed on the NYSE and compare their performance to two of South Africa's biggest banks listed on the JSE. The banks we will be looking at are:
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BAC vs WFS vs FSR vs SBK
The data for Wells Fargo and Bank of America was obtained from Macrotrends.net, while the share price data of the two South African banks were obtained from PSG. So why this comparison? Well we want to see if banks in the USA, where interest rates are a lot lower and difference between the repo rate and lending rates are a lot smaller than the 350 basis points in South Africa are still providing shareholders with decent returns? Or are banks in the USA stagnating? Or are banks in South Africa struggling due to the tough economic environment and defaulters on loans having an impact on South African bank shares.
The graphic below shows the share price history of the Bank of America over the last 5 years. As soon as readers click on any of the other shares in the top left box of the graphic, the graphic recalculates and shows the share price returns of all the selected shares over the last month. Users can then select/deselect as many shares as they want. Users can also select various preset date variables such as 1 month, 1 year, YTD (Year to date) or MAX (which in this case is 5 years)
The graphic below shows the share price history of the Bank of America over the last 5 years. As soon as readers click on any of the other shares in the top left box of the graphic, the graphic recalculates and shows the share price returns of all the selected shares over the last month. Users can then select/deselect as many shares as they want. Users can also select various preset date variables such as 1 month, 1 year, YTD (Year to date) or MAX (which in this case is 5 years)
The returns of the various banks mentioned over the preset time periods are as follows:
1 Month:
Year to Date (YTD):
1 Year:
Max (5 Years):
And the overall winner is FirstRand (FSR) with it achieving the highest return in 3 out of the 4 preset date ranges. Over a 1 month, year to date and 5 year period FirstRand's returns tops that of the others. First Rand narrowly beats Bank of America over a 5 year period with both banks providing a share price return of 135%, with Bank of America increasing by 135% on the dot, and FirstRand increasing by 135.38%
While it looks like FirstRand and Bank of America are close competitors, the returns provided by Wells Fargo and Standard Bank over a 5 year period are fairly similar with Standard Bank increasing by 70.07% while Wells Fargo increased by 65.7%. Even over a 1 year period the returns of these two banks are very similar, with Wells Fargo returning 19.15% and Standard Bank 16.75%
So while these 4 banks operate in totally different markets and economies, their share price returns are fairly similar, if one compares FirstRand to Bank of America, and Wells Fargo to Standard Bank. In the last couple of years (5 years in particular) this sector (the financial sector) has provided investors with very healthy returns be they in the USA or in South Africa
1 Month:
- FirstRand: 4.24%
- Wells Fargo: 1.73%
- Bank of America: -0.13%
- Standard Bank: -4.08%
Year to Date (YTD):
- FirstRand: 11.1%
- Bank of America: 3.92%
- Standard Bank: 3.69%
- Wells Fargo: -3.89%
1 Year:
- Bank of America: 31.40%
- FirstRand: 26.24%
- Wells Fargo: 19.15%
- Standard Bank: 16.75%
Max (5 Years):
- Bank of America: 135.00%
- FirstRand: 135.38%
- Wells Fargo: 65.66%
- Standard Bank: 70.07%
And the overall winner is FirstRand (FSR) with it achieving the highest return in 3 out of the 4 preset date ranges. Over a 1 month, year to date and 5 year period FirstRand's returns tops that of the others. First Rand narrowly beats Bank of America over a 5 year period with both banks providing a share price return of 135%, with Bank of America increasing by 135% on the dot, and FirstRand increasing by 135.38%
While it looks like FirstRand and Bank of America are close competitors, the returns provided by Wells Fargo and Standard Bank over a 5 year period are fairly similar with Standard Bank increasing by 70.07% while Wells Fargo increased by 65.7%. Even over a 1 year period the returns of these two banks are very similar, with Wells Fargo returning 19.15% and Standard Bank 16.75%
So while these 4 banks operate in totally different markets and economies, their share price returns are fairly similar, if one compares FirstRand to Bank of America, and Wells Fargo to Standard Bank. In the last couple of years (5 years in particular) this sector (the financial sector) has provided investors with very healthy returns be they in the USA or in South Africa