Which FIs Did Best in 2013? Check Their Net Income per Employee

Photo: PeshkovaThere are many ways to measure bank efficiency, but in 2013 net income per employee was arguably the best indicator of all for stock performance among large financial institutions.

Net income per employee — net income divided by total employees — indicates whether, on a deep level, a financial institution is operating in a profitable manner, particularly since in some corners of financial services, personnel costs are high.

When we looked at global financial institutions with market capitalizations of more than $5 billion, we found that the 20 with the most net income per employee outperformed the others in stock appreciation by 270 basis points. (All our data is year to date as of today.) Meanwhile, the big companies ranking from 21 to 50 in net income per employee underperformed the industry by 1,157 basis points.

Banking stocks, as an industry, grew 33.54% in value in 2013 YTD.

The performance between the two groups of large companies was stark. Those top 20 financial institutions averaged nearly $149,000 of net income per employee. The other FIs, meanwhile, managed just under $40,000 of net income per employee, or about 73% less.

50 LARGEST FINANCIAL INSTITUTIONS RANKED BY NET INCOME PER EMPLOYEE

Rank Company Name Symbol Market Capitalization Price Performance (This Yr) Revenue Per Employee Net Income Per Employee
1 INTERCONTINENTALEXCHANGE GROUP ICE $25.9B 81.52% $1.29 $519,546.89
2 CME GROUP INC CME $26.5B 60.76% $1.13 $365,576.92
3 CIT GROUP INC CIT $10.3B 33.13% $1.05 $211,404.49
4 SLM CORP SLM $11.3B 51.84% $0.97 $210,147.06
5 FIRST REPUBLIC BANK FRC $6.8B 60.83% $0.75 $200,813.27
6 SUMITOMO MITSUI FINANCIAL SMFG $71.1B 41.69% $144,422.69
7 GRUPO FINANCIERO SANTANDER BSMX $9.0B -15.95% $0.54 $131,769.74
8 NASDAQ OMX NDAQ $6.7B 59.74% $1.24 $131,683.96
9 MITSUBISHI UFJ FINANCIAL MTU $92.2B 20.11% $0.56 $130,170.87
10 MOODY’S CORP. MCO $16.7B 53.90% $0.43 $111,455.88
11 CAPITAL ONE COF $43.7B 30.81% $0.62 $108,706.08
12 FIFTH THIRD BANCORP FITB $18.5B 37.63% $0.33 $86,739.11
13 U.S. BANCORP USB $73.7B 26.39% $0.33 $86,018.67
14 MSCI INC MSCI $5.1B 40.27% $0.37 $83,273.65
15 M&T BANK CORP MTB $15.1B 17.87% $0.32 $77,034.13
16 SHINHAN FINANCIAL GROUP SHG $21.3B 22.65% $0.63 $76,737.55
17 WELLS FARGO & CO WFC $239.7B 33.12% $0.33 $75,694.65
18 LEUCADIA NATIONAL CORP LUK $10.3B 21.76% $0.96 $74,070.18
19 AMERICAN EXPRESS CO AXP $95.5B 55.17% $0.54 $73,826.77
20 BANCO DE CHILE BCH $13.5B -8.38% $0.29 $72,513.00
21 ITAU UNIBANCO ITUB $33.0B -9.65% $0.56 $68,427.69
22 JPMORGAN CHASE & CO JPM $218.6B 32.23% $0.41 $67,758.19
23 BERKSHIRE HATHAWAY INC BRK/A $153.1B 32.15% $0.62 $65,994.83
24 BANCO SANTANDER-CHILE BSAC $10.9B -19.02% $0.38 $64,751.39
25 PNC PNC $41.6B 34.11% $0.30 $64,617.57
26 ORIX CORP IX $23.2B 58.26% $0.58 $63,452.50
27 COMERICA INC CMA $8.7B 56.46% $0.29 $61,782.09
28 HSBC HSBC $205.3B 3.18% $59,266.67
29 KB FINANCIAL GROUP KB $15.0B 8.44% $0.81 $59,188.68
30 HUNTINGTON BANCSHARES HBAN $8.0B 50.39% $0.25 $52,203.96
31 BANCO BRADESCO BBDO $28.4B -4.32% $0.71 $52,202.78
32 KEYCORP KEY $12.0B 59.14% $0.28 $52,023.86
33 ING GROEP NV ING $53.4B 46.58% $0.59 $50,500.96
34 MCGRAW HILL FINANCIAL INC MHFI $21.0B 41.70% $0.29 $49,619.46
35 REGIONS FINANCIAL RF $13.5B 37.87% $0.24 $48,789.86
36 CITIGROUP INC C $158.5B 32.10% $0.36 $47,505.79
37 SUNTRUST BANKS INC. STI $19.6B 29.14% $0.33 $46,082.61
38 BB&T CORP BBT $26.2B 27.45% $0.31 $45,029.41
39 CREDICORP LTD BAP $10.3B -11.08% $0.18 $27,569.68
40 BANK OF AMERICA CORP BAC $167.1B 34.97% $0.37 $27,194.13
41 ZIONS BANCORPORATION ZION $5.5B 39.21% $0.23 $25,397.47
42 ICICI BANK LTD IBN $21.4B -14.90% $20,975.22
43 WOORI FINANCIAL HOLDINGS CO LTD WF $9.8B 8.88% $0.52 $20,356.39
44 NATIONAL BANK OF GREECE NBG $13.8B -67.93% $20,287.66
45 BBVA BBVA $71.0B 31.10% $15,818.72
46 BANCO SANTANDER SAN $101.5B 10.16% $10,437.86
47 ING US VOYA $9.2B $1.22 $4,242.86
48 BARCLAYS PLC BCS $72.6B 12.98% $3,894.57
49 LLOYDS BANKING LYG $93.7B 64.06% $0.61 ($2,238.49)
50 ROYAL BANK OF SCOTLAND RBS $63.4B 3.99% $0.30 ($34,015.62)

The message here is that good things come to large banks that keep their net income per revenue strong.

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