Q4 earnings are in. The gap between winners and losers is widening aggressively. While the media focuses on headlines, we focused on the hard data: Efficiency & ROTCE.
We audited the Big 4 to rate the sector quality. Here is the verdict:
Bank | Role | Verdict |
|---|---|---|
$JPM | The King | Expensive Fortress. Hold. |
$BAC | The Machine | RATING: BUY (Top Pick) |
$WFC | Wildcard | RATING: BUY (Momentum) |
$C | Laggard | RATING: SELL/AVOID |
Why Bank of America ($BAC) wins the audit?
The Machine: Operating at a 61% Efficiency Ratio.
Growth: +7% Revenue YoY, quietly printing cash.
Stability: Boring, reliable alpha without the drama.
Why Wells Fargo ($WFC) is the wildcard?
The Catalyst: The Fed Asset Cap removal is a game-changer.
Turnaround: Finally waking up after years in regulatory jail.
In the attached report, we break down the cash flows, credit quality, and buyback strategies. Don't buy the sector ETF blindly. Buy quality.
