Five Banks that Passed the Stress Test with Flying Colors

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U.S. banks fared better during the latest round of “stress tests”, with 17 of the 18 largest banks proving that they have enough money to continue lending in the case of a hypothetical economic downturn.

Some banks fared better than others – with smaller, regional banks outperforming the big boys.

Here are five banks that passed the Fed’s latest stress test with flying colors – and how it’s impacting their stocks today:

  • Bank of New York Mellon Corp. (NYSE: BK): This New York-based bank would have the most capital on hand if a severe economic downturn were to hit the U.S. Its Tier 1 common ratio – which measures high-quality capital as a share of risk-weighted assets – was an industry-best 13.2% (5% is deemed the minimum allowance by the Fed). That victory sent BK shares up close to 2% today.
  • State Street (NYSE: STT): The Boston-based bank was right behind Bank of New York with a 12.8% common ratio. Its shares rose 1% today to a new 52-week high $59.28.
  • BB&T (NYSE: BBT): North Carolina’s second-largest bank posted a common ratio of 9.4%. The shares jumped 0.6%.
  • Fifth Third Bancorp (NYSE: FITB): The Cincinnati-based bank boasted a common ratio of 8.6%. Shares increased 0.4%.
  • Citigroup (NYSE: C): The only one of the six largest U.S. banks to crack the top 10. Citigroup’s common ratio was 8.3%, pushing the stock up 3.3% to a new 52-week high of $46.47.
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