2011 was a record-breaking year for three of the top-5 U.S. banks, who cumulatively profited over $55 billion. The total profit is down for the top 5 from $60.4 billion last year, but what’s $5 billion amongst friends?!
It’s worth noting that in 2010, Bank of America actually reported a yearly loss of $2.2 billion with over $12.4 billion of the loss due to goodwill impairment. In 2011 Bank of America reported net income of $2.0 billion with a 3.18 billion goodwill impairment. As a result, Bank of America’s annual report will actually show their annual profits increased by $4.2 billion. Bank of America is the only bank in the top 5 to use goodwill in their annual income statement.
| 2011 | 2010 | Change | Notes | |
| Bank of America | $4,580,000,000 | $10,400,000,000 | -56% | Reported profits were $2.0 billion with $3.18 billion in goodwill impairment, which has been added back |
| J. P. Morgan Chase & Company | $19,000,000,000 | $17,400,000,000 | 9.2% | Record profits |
| Citigroup | $11,300,000,000 | $10,600,000,000 | 6.6% | Record profits |
| Wells Fargo | $15,900,000,000 | $12,400,000,000 | 28.2% | Record profits |
| Goldmann Sachs | $4,440,000,000 | $9,600,000,000 | -53.8% | |
| Total | $55,220,000,000 | $60,400,000,000 | -8.6 |
What does this mean?
By all accounts, the banking industry is as healthy as ever. Consumers are receiving loans. Business loans are being made. Credit cards are being issued. More debt is being created, which is where banks derive most of their profits.
Of course if you want to stick it to the banks, here are a few tips on how to do that.
Alex Casteel is owner of Casteel Real Estate Professionals, a real estate brokerage serving the communities of Mesa, Arizona, and the Phoenix metropolitan area. Alex is a Certified Distressed Property Expert and earned an MBA from the W. P. Carey School of Business at Arizona State University. 
