The large U.S. banks continued to reduce rates paid on interest-bearing deposits in 3Q09, as deposit competition eases. Many banks reported q/q declines in average deposits. However, with banks’ loan portfolios also shrinking, most of these banks improved their loan-to-deposit ratios.
The largest banks (Bank of America, Wells Fargo and Chase) offer by far the lowest rates; Wells Fargo’s rate fell 3 bps between 2Q09 to 3Q09, to 0.57%. Regional banks maintain relatively higher rates, with KeyBank’s average rate above 2%.
For most banks, there was stronger growth in noninterest-bearing deposits, with many regional banks reporting double-digit annualized increases between 2Q09 and 3Q09.
|
Bank |
Average Interest-Bearing Deposits ($BN, 3Q09) |
Annualized Change in Interest-Bearing Deposits |
Rate on Interest-Bearing Deposits (3Q09) |
Rate Change (2Q09-3Q09) |
Non-Interest Deposits (3Q09) |
Annualized change in Non-Interest Deposits (2Q09-3Q09) |
|
Bank of America (domestic) |
$654.2 |
+6% |
0.98% |
-24 bps |
$259.6 |
+18% |
|
Wells Fargo |
$633.4 |
-3% |
0.57% |
-3 bps |
$172.6 |
-4% |
|
Chase |
$661.0 |
-7% |
0.65% |
-5 bps |
N/A |
N/A |
|
PNC |
$146.9 |
-13% |
1.04% |
-21 bps |
$41.8 |
+8% |
|
U.S. Bank |
$129.4 |
+11% |
0.92% |
-8 bps |
$37.0 |
-4% |
|
SunTrust |
$95.2 |
-2% |
1.40% |
-27 bps |
$24.5 |
-1% |
|
Capital One |
$103.1 |
-15% |
1.86% |
-22 bps |
$12.8 |
+6% |
|
BB&T |
$89.9 |
+56% |
1.37% |
-26 bps |
$17.4 |
+50% |
|
Regions |
$73.7 |
-5% |
1.62% |
-16 bps |
$21.1 |
+14% |
|
Key |
$54.4 |
-3% |
2.10% |
-12 bps |
$13.6 |
+37% |
|
Zions |
$31.9 |
-4% |
1.21% |
-25 bps |
$11.4 |
+27% |
|
M&I |
$33.5 |
+12% |
1.58% |
-13 bps |
$7.9 |
+28% |
|
Huntington |
$33.4 |
-1% |
1.92% |
-19 bps |
$6.2 |
+5% |