I am writing a Bank Analysis on Wells Fargo.

Question

These are the numbers I came up with from the FDIC database:
1) Profitability
Basic Spread: 4.556% while the all other U.S. Banks are 4.019%

Return on Assets: .675% and the national average is .073%

Return on Equity: 8.73% and the national average is .785%

2) Risk Management
Capitalization Ratio: 7.728% and the national average is 9.36%

Leverage Ratio/Capital Multiplier: 12.94 and the national average is 10.68

Primary Liquidity Ratio: 7.944% and the national average is 12.234%

Credit Risk Loss Rate: 5.67% and the national average is 5.096%

Would you recommend a close friend to bank at Wells Fargo given this information?

My opinion is no. Although they are profitable they engage in risky behavior. They maintain low capital which is vital for a bank's survival so that they don't go insolvent.

Also did Wells Fargo's acquisition of Wachovia affect their risk management? Is my opinion reasonable? And what could cause Wells Fargo to have a low primary liquidity ratio when compared to other banks?

Thanks in advance for your assistance.