US Banks_ How Willing Is Your Bank to Pay Up for Deposits_ December 2024
2025-01-10 02:25

Summary of Conference Call on US Banks - January 6, 2025 Industry Overview - Industry: US Banks, North America - Focus: Certificate of Deposit (CD) Rates and Banking Sector Performance Key Points CD Rates Trends - Short-term CD rates (1-12 months) have decreased by 8 basis points (bps) to 4.03% since December 2, 2024, and are down 72 bps since June 30, 2024 [9] - Long-term CD rates (13-36 months) remained stable at 2.90% since December 2, 2024, but are down 35 bps since June 30, 2024 [9] - The average highest CD rate has decreased by 7 bps to 4.04% since December 2, 2024, and is down 73 bps since June 30, 2024 [9] Highest and Lowest CD Rates - Highest CD Rates: - OZK: 4.75% - FHN: 4.50% - FITB: 4.41% [9] - Lowest CD Rates: - CMA: 3.75% - MTB: 3.60% - CIT: 3.50% [9] Changes in CD Rates - Largest Increases: - FITB increased its 1-12 month and highest rate by 46 bps - C increased its 13-36 month rate by 140 bps [9] - Largest Decreases: - CFG decreased its 1-12 month rate and highest rate by 50 bps - PB decreased its 13-36 month rate by 61 bps [9] Investment Recommendations - Overweight-rated Large Cap Banks: C, STT, GS, USB, WFC, BK - Midcap Banks: MTB, PB, HBAN, CADE, EWBC - Consumer Finance: SYF, BFH, ALLY, SLM [3] Regional CD Rates - CD rates vary by region, with specific banks offering competitive rates in their respective areas [25] Online Savings Rates - Online rates have seen an average reduction of 11 bps since December 2, 2024, with notable decreases across several banks [9] Additional Insights - The banking sector is currently viewed as attractive, with a focus on both large cap and midcap banks as well as consumer finance [5] - The data indicates a trend of banks adjusting their CD rates in response to the Federal Reserve's monetary policy changes [1][9] This summary encapsulates the key findings and recommendations from the conference call regarding the US banking sector and CD rates, providing insights into current trends and investment opportunities.