Top and Bottom Big Banks Performance Post-Crisis

Since the banking crisis a year ago, the performance of big banks has been a mixed bag, with some emerging as winners while others continue to struggle.

In March 2023, the banking sector faced its biggest crisis since the Great Recession, resulting in the dissolution and sale of three central regional banks. Silicon Valley Bank, Signature Bank of New York, and First Republic Bank were affected.

The crisis began with the collapse of Silicon Valley Bank on March 10, 2023, followed by the failure of Signature Bank of New York a few days later. First Republic Bank also went under just over a month afterwards. However, the liquidation announcement of Silvergate Bank on March 8, 2023, triggered by the collapse of the cryptocurrency exchange FTX, set off a chain reaction in the regional banking industry.

Customers became concerned about the safety of their funds, leading the federal government to intervene and provide financial support. Despite this, most bank stocks suffered significant losses during the crisis.

A year later, while the industry has stabilized, many banks are still grappling with challenges. Here’s a look at some of the best- and worst-performing big-bank stocks over the past 12 months.

Top performers:

Despite the overall downturn in the banking sector, a few banks have managed to thrive. First Citizens BancShares has seen remarkable growth, with its stock soaring by 127% since March 8, 2023. The bank’s acquisition of Silicon Valley Bank’s assets contributed to its expansion, making it the 16th-largest bank in the U.S.

JPMorgan Chase, the country’s largest bank, also fared well, with its stock rising by about 40% over the same period. The acquisition of assets from First Republic Bank bolstered its position in the market, propelling its growth.

Other notable performers include Ally Financial, Capital One, and Wells Fargo, which all saw significant gains in their stock prices.

Worst performers:

On the flip side, some banks have struggled to recover from the crisis. Truist Financial experienced a 13% decline in its stock price since March 8, 2023, facing challenges such as deposit outflows and contracting margins.

State Street, a custody bank and asset manager, saw its stock price drop by 11.6% over the same period. Rising expenses and deteriorating credit quality contributed to its decline.

While some banks have shown resilience and growth, others continue to grapple with ongoing challenges. First Citizens emerges as a standout performer, with JPMorgan Chase also remaining a solid option for long-term investment. State Street presents potential upside, while others warrant further investigation before making investment decisions.

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