Jim Cramer says 'all banks are not created equal,' and these are his favorites

CNBC's Jim Cramer explained on Thursday why his charitable investment trust is sticking with its ownership of Morgan Stanley and Wells Fargo after reviewing the recent slate of major bank earnings.

The host of "Mad Money" said that the banks are all over the place this earnings season, which shows the importance of individual stock picking. Even though he expects a solid year for the financials in 2022, he said that all banks are not created equal.

The increase in operating expenses was reported by Citigroup on Friday. Cramer said that it was disappointing that the firm's revenues only increased by 1%.

Cramer said that Citi's stock is cheap and trading at 80% of its book value. He acknowledged that the stock may see a lift this quarter when the bank restarts its share repurchases and the bank paused its program in December due to regulatory issues.

Cramer said that investors were disappointed by the jump in noninterest expenses by JP Morgan. Cramer said the Street was a bit surprised by the magnitude of the capital commitment by the bank.

Cramer thinks the sell-off in JP Morgan's stock has been overblown. The most expensive in the group on a book value basis is JPMorgan, which trades at 13 times earnings. "I think you can do better," he said.

Wells Fargo beat analyst expectations on the top and bottom lines. "Wells is very sensitive to interest rates, so when you see bond yields surging, think Wells Fargo," said Cramer.

Cramer believes Goldman can follow up its record-breaking performance in 2021, with another strong performance this year. "Goldman's one of the best franchises on the planet, but it sells for less than 9 times earnings for heaven's sake," he said.

He said that the only reason his trust doesn't own Goldman is because it already owns Morgan Stanley. He said that he doesn't need to have two investment banks in his portfolio.

Cramer said he was very impressed by Morgan Stanley's numbers, noting that revenue and per-share earnings topped the Street's expectations. Cramer said that the investment banking unit and wealth management are performing well and expenses are under control.

They're buying back stock. What's not to like? Cramer asked rhetorically.

Cramer said Bank of America delivered solid numbers, including the fact that revenue growth outpaced expense growth.

Cramer said that Bank of America is in a great position because it's sensitive to interest rates and that he likes Wells Fargo better.

Jim Cramer's every move in the market is tracked by the CNBC Investing Club.