Bank deposit growth trends

American Banker (, subscription needed to access) recently published end-second quarter 2010 deposit data for the top 200 bank holding companies in the U.S.  These top 200 banks grew deposits by 2.9% between 2Q09 and 2Q10.  This growth rate represents a slowdown relative to recent quarters, as many banks’ need to aggressively grow deposits as a funding source has abated (loan-to-deposit ratios have fallen below 100% and loan demand is expected to remain relatively anemic).  The top 10 banks grew deposits by 1.7%.

What is most notable in the data in the continued strong deposits growth rates for leading direct (branchless) banks, including:

  • ING Direct: 17th largest bank by deposits; 4%year-over-year growth
  • Charles Schwab: 25th largest bank; 43%growth
  • USAA: 31st largest bank; 17%growth
  • Discover: 33rd largest bank; 19% growth
  • American Express: 34th largest bank; 29%growth
  • Ally Financial: 35th largest bank; 31%growth
  • MetLife: 69th largest bank; 25%growth
  • Scottrade Bank: 105th largest bank; 71%growth