--- title: "Money-Center Banks Industry: Companies" description: "20 SEC filers are classified under the Standard Industrial Classification code that describes the money-center banks industry." canonical: https://www.getswoopr.com/stocks/industries/financials/money-center-banks/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Money-Center Banks Industry ## Direct Answer 20 SEC filers are classified under the Standard Industrial Classification code that describes the money-center banks industry, and their latest annual reports show $585.2 billion of combined revenue and a median net margin of 34.8%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Money center banks are the largest banks, with national and global operations in lending, trading, investment banking, payments and wealth. Their size brings scale benefits and higher regulatory capital requirements. The first numbers to compare across companies here are net interest income, investment banking and trading revenue and credit costs. ## Key Industry Metrics - **Net interest income**: Income from lending less interest paid on deposits and borrowing. It is sensitive to policy rates and to the mix of loans and deposits. - **Investment banking and trading revenue**: Fees from deals and income from trading. These are volatile and can offset weakness in lending, but swing with markets. - **Credit costs**: Provisions and write-offs on loans and cards. They show credit health, and rise as the economy weakens. - **Efficiency ratio**: Noninterest expense relative to revenue. Size brings scale benefits, though complexity and compliance add to costs. - **CET1 ratio**: Core capital relative to risk-weighted assets, subject to regulatory minimums and buffers. It determines room for dividends and buybacks. ## Primary Macro Drivers - **Interest rates**: Rates affect loan yields, deposit costs and trading income, so rate paths move net interest income across the group. - **Capital markets activity**: Deal and trading activity set investment banking and trading revenue, which swing with market conditions. - **Credit cycle**: Loan losses follow the economy across consumer and commercial books, shown in credit costs. - **Regulation and stress tests**: Stress tests and capital rules set how much can be paid out and lent, shown in the CET1 ratio. ## Major Risks - **Credit losses**: Recessions lift defaults across many portfolios, raising provisions and cutting earnings. Watch credit costs and non-performing loans. - **Market and trading volatility**: Trading and fee revenue fall in poor markets and positions can lose value. Watch trading revenue variability and risk disclosures. - **Regulatory capital**: Higher requirements for large banks limit buybacks and growth. Watch the CET1 ratio against requirements. - **Geopolitical exposure**: Global operations expose banks to sanctions, conflict and country risk. Watch country exposure disclosures and legal proceedings. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Cyclical | | Capital Intensity | High | | Regulatory Intensity | High | | Industry Maturity | Mature | | Geographic Importance | Global | ## Money-Center Banks Filers in the SEC Record 20 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6021. Their latest fiscal years end in 2025, and together they reported $585.2 billion of revenue. Median revenue growth over the prior year was 6.6%. Median net margin was 34.8%. Median total liabilities were 91% of total assets, and 20 of 20 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Jpmorgan Chase & Co](https://www.getswoopr.com/stocks/companies/jpmorgan-chase/) | $182.4 billion | 2.8% | n/a | 31.2% | FY 2025 | | [Bank Of America Corp](https://www.getswoopr.com/stocks/companies/bank-of-america/) | $113.1 billion | 6.8% | n/a | 27.0% | FY 2025 | | [Citigroup Inc](https://www.getswoopr.com/stocks/companies/citigroup/) | $85.2 billion | 5.6% | n/a | 16.8% | FY 2025 | | [Wells Fargo & Company](https://www.getswoopr.com/stocks/companies/wells-fargo/) | $83.7 billion | 1.7% | n/a | 25.5% | FY 2025 | | [Capital One Financial Corp](https://www.getswoopr.com/stocks/companies/capital-one/) | $53.4 billion | 36.6% | n/a | 4.6% | FY 2025 | | [Us Bancorp \de\](https://www.getswoopr.com/stocks/companies/u-s-bancorp/) | $28.7 billion | 4.4% | n/a | 26.4% | FY 2025 | | [Pnc Financial Services Group, Inc.](https://www.getswoopr.com/stocks/companies/pnc-financial-services/) | $23.1 billion | 7.2% | n/a | 30.3% | FY 2025 | | [Keycorp](https://www.getswoopr.com/stocks/companies/keycorp/) | $7.5 billion | 62.7% | n/a | 24.3% | FY 2025 | The 8 largest of 20 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## How Money-Center Banks companies make money Money-center banks are the largest U.S. banking institutions, operating nationally and internationally across a wide range of financial services. They earn revenue from five broad streams: net interest income from traditional banking, investment banking and advisory fees, trading and markets revenue, asset management and wealth management fees, and transaction banking services including custody, payments, and cash management. Unlike regional banks that depend primarily on deposit spread and lending, money-center banks generate a meaningful share of revenue from fee-based capital markets and advisory businesses that fluctuate with market activity and corporate transaction volume. This diversification can be protective in credit downturns but adds earnings volatility in market disruptions. The balance sheet is also qualitatively different: money-center banks hold substantial trading book assets, derivatives, and securities inventories that require different risk management than a community or regional bank loan portfolio. Capital requirements are correspondingly higher, and the regulatory framework includes stress testing, resolution planning, and global systemically important bank (G-SIB) surcharges that can meaningfully influence capital strategy and return potential. ## Understanding the key metrics ### Return on tangible common equity (ROTCE) ROTCE is the primary profitability measure for banks, comparing net income attributable to common shareholders with tangible book value. High ROTCE relative to cost of equity creates value; sustained ROTCE below cost of equity destroys it. Money-center banks target ROTCE of 15-20% or above. ### Efficiency ratio Noninterest expense divided by net revenue. Lower is more efficient. Money-center banks have historically operated at 55-65% efficiency ratios. Technology investment in the current cycle has kept efficiency ratios elevated at some institutions despite revenue growth. ### Net interest margin (NIM) Net interest income divided by interest-earning assets. Money-center banks typically have lower NIMs than regional banks because of their larger securities portfolios and more diversified funding. NIM is an important but not dominant driver of earnings given the weight of fee revenue. ### CET1 capital ratio Common Equity Tier 1 capital as a percentage of risk-weighted assets. G-SIB banks face higher minimum requirements and stress capital buffers than smaller banks. A strong CET1 ratio above targets enables buybacks and dividends; a thin buffer restricts shareholder returns. ### Revenue mix (fee income share) The percentage of revenue from noninterest income sources (investment banking, trading, fees). Higher fee income shares reduce dependence on interest rate movements but add capital markets cyclicality. ## Valuation framework Money-center banks are valued on P/E, P/TBV, and ROTCE relative to cost of equity. Institutions generating high ROTCE consistently tend to trade at premium P/TBV multiples. ROTCE above 18-20% typically warrants valuations above tangible book value. Investment banking and trading cycles affect P/E multiples because earnings are more volatile. Regulatory capital requirements set a floor on the capital that must be held, limiting financial leverage and affecting achievable ROTCE. ## Competitive structure The largest money-center banks compete primarily with each other globally and face different competitive dynamics by segment. In investment banking and capital markets, competition is intense among the bulge-bracket firms and select boutiques. In retail and commercial banking, they compete with regional banks, credit unions, and fintechs. In asset management, they compete with independent managers, ETF providers, and other bank-affiliated asset managers. Scale advantages in technology infrastructure, regulatory compliance, and global reach are meaningful at the largest institutions. ## Bull case The bull case combines rising rates (which expand net interest income across the large loan and securities book), a strong investment banking cycle (which drives advisory and underwriting fees), robust capital markets activity (which boosts trading revenues), and disciplined expense management that translates revenue growth into high operating leverage. G-SIB capital builds completed by leading banks can allow increasing capital returns to shareholders. ## Bear case The bear case involves recession-driven credit deterioration, declining capital markets activity (reducing investment banking and trading), margin compression as rates fall or deposit competition intensifies, and increased regulatory capital requirements after stress tests or regulatory changes. Technology disruption in retail banking from fintech challengers and changes in how institutions manage credit and deposit relationships are longer-term structural risks. ## What to monitor Track these metrics to stay ahead of material changes in industry fundamentals: 1. Net interest income and NIM trend in each rate environment 2. Investment banking revenue: advisory, equity underwriting, debt underwriting 3. Trading revenue: fixed income, currencies, commodities (FICC) and equities 4. Wealth and asset management AUM inflows, outflows, and fee margins 5. Credit quality: net charge-offs, nonperforming assets, and reserve coverage 6. CET1 ratio versus requirement buffer and capital return plans 7. Efficiency ratio trends and technology investment pace 8. Consumer banking deposit growth and digital adoption metrics 9. Transaction banking revenue (custody, cash management, trade finance) 10. Regulatory news including stress test results, resolution plan updates, G-SIB surcharge changes ## Where to Go Next The Money-Center Banks guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company. ### More in Financials - [Financials sector overview](https://www.getswoopr.com/stocks/industries/financials/) - [Mortgage Finance](https://www.getswoopr.com/stocks/industries/financials/mortgage-finance/) - [Merchant Acquirers](https://www.getswoopr.com/stocks/industries/financials/merchant-acquirers/) - [Mortgage Insurance](https://www.getswoopr.com/stocks/industries/financials/mortgage-insurance/) - [Market Makers](https://www.getswoopr.com/stocks/industries/financials/market-makers/) - [Mortgage Originators](https://www.getswoopr.com/stocks/industries/financials/mortgage-originators/) - [Market Data Providers](https://www.getswoopr.com/stocks/industries/financials/market-data-providers/) - [Mortgage REITs](https://www.getswoopr.com/stocks/industries/financials/mortgage-reits/) - [Life Reinsurance](https://www.getswoopr.com/stocks/industries/financials/life-reinsurance/) ### Put it to work - [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/) - [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/) - [Company research](https://www.getswoopr.com/stocks/companies/) - [All industries](https://www.getswoopr.com/stocks/industries/) ## Frequently Asked Questions What are the main KPIs for the Money-Center Banks industry? Key performance indicators for the Money-Center Banks industry include: Net interest income, Investment banking and trading revenue, Credit costs, Efficiency ratio, CET1 ratio. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Money-Center Banks industry? The Money-Center Banks industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing. What are the biggest risks in the Money-Center Banks industry? The primary risks for Money-Center Banks companies include: Credit losses, Market and trading volatility, Regulatory capital, Geopolitical exposure. Investors should assess each company's exposure to these factors and its track record of navigating them. What makes money-center banks different from regional banks? Money-center banks operate nationally and globally, have significant capital markets and investment banking businesses, face stricter G-SIB regulatory requirements, and have much more diversified revenue sources. A regional bank depends primarily on deposit spread and local lending. A money-center bank earns substantial revenue from advisory fees, trading, custody, payments infrastructure, and asset management in addition to traditional banking. How do capital markets cycles affect money-center bank earnings? Investment banking and trading revenues are cyclical. Advisory fees and underwriting activity surge during M&A booms, IPO windows, and high corporate issuance activity. Trading revenues can spike during periods of volatility but can also be negative in severe market dislocations. These cycles can cause money-center bank earnings to diverge significantly from regional bank earnings in a given year, even if the interest rate environment affects both similarly. ## References - [Federal Reserve: Large Bank Capital Requirements](https://www.federalreserve.gov/supervisionreg/large-bank-capital-requirements.htm) - [FDIC: Statistics on Depository Institutions](https://banks.data.fdic.gov/) - [OCC: Bank Supervision Policy](https://www.occ.treas.gov/topics/supervision-and-examination/bank-operations/index-bank-operations.html) - [SEC EDGAR: Bank Holding Company Filings](https://efts.sec.gov/LATEST/search-index?q=%22bank+holding+company%22&forms=10-K) - [FSB: Global Systemically Important Banks List](https://www.fsb.org/2023/11/2023-list-of-global-systemically-important-banks-g-sibs/) **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).