Banks make profits by giving loans to people on a higher rate of interest than what they pay to depositors. There is a massive difference in banks collecting and spending money. Non-interest income; is an option that banks use to double their revenue even during low interest rates. This method includes charges such as transaction fees, overdraft charges, trading fees and a list of other sources that can generate a significant amount of revenue for some banks. Investing in bank stocks has been a trend in place for more than 200 years in the financial industry. A few countries have also experienced significant bank panics for several years.

Let’s Find Out Top Three American Banks that Rank the Highest In terms of Stocks by Market Cap.

 

  1. JP Morgan Chase

As known as the largest bank in the U.S. with assets over $2.6 trillion, JP Morgan ranks the first in the list. JP Morgan was founded in 1799 and headquartered in New York.

 

  1. Bank of America

Founded in 1874, in Charlotte, North Carolina; Bank of America is one of the country’s largest banks with more than $2.2 trillion in assets, 4,500 business units, and 16,000 ATMs.

Bank of America

  1. Well Fargo

This bank was founded in 1852 and headquartered in San Francisco, California. Following JP Morgan and Bank of America, Well Fargo has assets over $1.9 trillion.

 

Here are the Top Factors that You Must Consider if You are Planning to Invest in Bank Stocks

  • First, you must consider understanding the history of bank stocks. It is essential to do your homework to gain knowledge over its ups and downs. The value of your cash can either double or dip at the same time. As mentioned earlier, this sector has witnessed significant drops several times that remained the same for so many years, leaving the investors in trouble.
  • Return on equity (ROE) is another crucial factor to be considered. ROE is nothing but how much profit a company generates as a percentage of shareholder’s equity. More ROE means more efficiency of a company putting shareholder’s equity to work.
  • An easy way to measure a bank’s profitability is the net interest margin (NIM). It is nothing but the difference between the interest a bank receives and the interest a bank pays in terms of its total-interest-generates assets. A NIM of at least 3% or more means that the bank is profitably managing its assets.
  • Besides evaluating a bank’s profits, it’s also necessary to know how good is a bank in terms of generating income. Efficiency ratio can be calculated by taking the bank’s operating costs (non-interest expense) and dividing it by the net revenue.
  • Make sure to do thorough research on how the coverage ratio of the bank looks like. Every bank can’t recover the loan amount which they have paid. So, it’s necessary to get this checked before you plan to invest in a particular bank’s stocks.

COVID-19 has taken a toll in every part of the world, and countries are striving hard to take measures to limit the spreading. Lockdown and self-quarantine has affected our daily food practices. Proper nutrition is vital for everyone. During the coronavirus days, one must eat healthy food to fight back the unwanted guests invading our body. Eating vegetables and fruits is a healthier option during these unusual stress times. Let’s read some of the tips to keep in mind to reduce stress during COVID-19 days.

Healthy Eating

A Better Healthy Eating Approach During Tough Times

  • Consume pumpkin seeds. Pumpkin seeds are rich in potassium. Ingesting these seeds controls blood pressure and manages electrolyte balance.
  • Eating fatty fish helps to calm your nerves. Fatty fish contains Omega-3 and is a hub for controlling neurotransmitters. Consuming fatty fish eliminate inflammation and increases brain functionality.
  • Gobbling Brazilian nuts reduces stress due to a component known as selenium. It aids in minimizing inflammation and cell damage. Most of all, it contains anti-carcinogenic, which reduces the chances of getting cancer.
  • Chocolate, from time immemorial, chocolate is known to increase the dopamine level in your body. It is highly recommended by the doctors and other medical instructors to consume chocolate as it reduces stress. Dark chocolates are the best in this case.
  • Eggs contain vitamin D, protein, and amino acids. These amino acids release a happy hormone known as serotonin that helps to control your stress. A component called tryptophan is also present in eggs helping to relax your nerves.
  • Chamomile is a conventional tea therapy. It helps the body to control anxiety levels and urge you to sleep. It is also famous for its other capabilities like acting as an antioxidant, anti-inflammatory, and has relaxing properties.
  • Turmeric is a spice and has got properties like curing many infections of your body. A component named curcumin is present that helps to manage stress and anxiety-related issues.
  • Citrus and red bell peppers have a high amount of vitamin C, which helps to increase the immunity power in our body.

Food

  • Chicken and turkey contain vitamin B6. It is very vital for our body as it increases immunity power. There is a limit for consuming any food as it might result in other health issues.
  • Oysters, mussels, and clams are rich in zinc, which has virus-fighting power. It also reduces anxiety, and in-turn increases immunity power in the body.
  • Lastly, yoghurt. Yoghurt contains lactobacillus and bifidobacterium that helps you to maintain a healthy digestive tract. Consuming yoghurt also helps to eradicate inflammation and stress.

Conclusion

Staying indoors is very challenging during COVID-19. You have to wash your hands, wear a mask, and apply sanitizers to protect yourself from the virus. Apart from these hygiene steps, you can get bored and get anxiety issues. During these tough times, prepare yourself by putting a little thought into healthy food choices that can lift your stress.