Factbox-US banks hit by deposit flight as clients seek higher returns


FILE PHOTO: The company logo for financial broker Charles Schwab is displayed at a location in the financial district in New York, U.S., March 20, 2023. REUTERS/Brendan McDermid/File Photo



(Reuters) – A slew of banks in the United States reported deposit outflows in the first quarter, compared with the fourth quarter, after customers sought the refuge of “too-big-to-fail” institutions and money market funds for higher yields.

The closure of two U.S. regional banks in March shook investor confidence and set off fears over deposit safety after small banks shed $177.5 billion in deposits in March from the previous month, according to data from the U.S. Federal Reserve.

These lenders will be compelled to lift deposit rates to attract customers, analysts worry, raising costs of one of the cheapest sources of funding.

Total deposits at Wall Street’s biggest lenders:

Big Banks Reported Q1 Deposits vs Q4

JPMorgan Chase (NYSE:JPM) and Co Total deposits increased 2% to $2.38


Bank of America Corp (NYSE:BAC) Total deposits declined 1% to $1.91


Citigroup Inc (NYSE:C) Total deposits declined 3% to $1.33


Wells Fargo (NYSE:WFC) & Co Total deposits declined 2% to $1.36


Goldman Sachs Group Inc (NYSE:GS) Total deposits declined 3% to $375


Morgan Stanley (NYSE:MS) Total deposits declined 3% to $347.5


Overview of deposits at other prominent financial firms:

Mid-Sized Firms Reported Q1 Deposits vs Q4

Charles Schwab (NYSE:SCHW) Corp Deposits shrank 11% to $325.7


M&T Bank Corp (NYSE:MTB) Total deposits fell nearly 3%

to $159.1 billion

State Street Corp (NYSE:STT) Deposits at State Street fell

3% to $210 billion

Bank of New York Mellon (NYSE:BK) Corp Average deposits fell 3% to

$274 billion

Citizens Financial (NYSE:CFG) Group Inc Average deposits fell 2.6% to

$174.4 billion

Western Alliance (NYSE:WAL) Bancorp Total deposits fell 11.3% to

$47.6 billion

PNC Financial Services Group (NYSE:PNC) Total deposits rose marginally

Inc to $436.8 billion

First Horizon (NYSE:FHN) Corp Total deposits declined 3% to

$61.4 billion

U.S. Bancorp Average total deposits

increased 5.9% to $510.32


Zions Bancorporation (NASDAQ:ZION) Total deposits declined 3% to

$69.2 billion

Fifth Third Bancorp (NASDAQ:FITB) Total average deposits were

down marginally at $160.65


Comerica (NYSE:CMA) Inc Average deposits fell about 5%

to $67.8 billion

Truist Financial (NYSE:TFC) Corp Average deposits dropped 1.2%

$408.5 billion

KeyCorp (NYSE:KEY) Average deposits fell about

1.6% to $143.4 billion

Huntington Bancshares (NASDAQ:HBAN) Inc Average total deposits

increased by $472 million

Source: Company statements


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