These Were the 3 Top-Performing Large U.S. Bank Stocks in 2022

The banking sector had a rough year, but some large banks managed to survive the sell-off.

These Were the 3 Top-Performing Large U.S. Bank Stocks in 2022

The banking sector struggled in 2022, as investment banking revenue fell significantly, and investors repositioned their portfolios to prepare for what could be a difficult year and lower earnings in 2023. Investors are concerned about fast-rising deposit costs, narrowing margins, and the normalization of credit. Still, a few large bank stocks fell only slightly and widely outperformed the broader market. Here are three of the top-performing large U.S. bank stocks in 2022. Schwab completed a big acquisition of TD Ameritrade in late 2020 to add significant scale to its investor services division. While all banks are growing this revenue thanks to higher interest rates, Schwab does this without taking a lot of credit risk on its balance sheet. Loans only make up about 7% of total interest-earning assets. But the company should continue to benefit from rising interest rates, and I definitely think it's well positioned long term. The stock has also served investors very well since the pandemic. The company makes 60% of its revenue from advice and wealth management, 19% from asset management, and 21% from retirement and protection solutions, which is benefiting from baby boomers entering retirement and millennials and Gen-Xers planning for it. Again, the outlook heading into 2023 remains cloudy for asset and wealth managers, but Ameriprise certainly has a solid fundamental business. The stock is only down about 5% this year, which is a win compared to the broader market and banking sector. Furthermore, the bank said in the third quarter that it does not expect to have to raise any more higher-cost wholesale deposits in the near term, even as deposits are becoming more expensive and competitive. Regions also has a large business and commercial lending portfolio, most of which should have variable rates and reprice as the Federal Reserve raises interest rates, allowing the bank to grow its margins. The stock is quite expensive at this point, trading at close to 300% of its tangible book value, or net worth. But analysts are still bullish, and investors seem to like that the bank is positioned for a variety of scenarios. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab. The Motley Fool has a disclosure policy.