Key insights
- US banks are cautiously optimistic about deposit growth, though inflation remains a pressure point. While mid- and high-end consumers show positive trends, lower-income consumers face challenges. Regional competition is intensifying in the Southeast and Texas, while California is currently the least competitive market. This suggests a stable, but nuanced, banking environment that could support lending and economic activity.
Investing.com -- Truist hosted a call with Curinos on Thursday to discuss deposit trends in the US banking sector.
Retail and commercial executives who spoke with Curinos expressed cautious optimism about growing deposits this year. The executives acknowledged that year-to-date consumer figures may be somewhat inflated by tax refunds, and inflation remains a pressure point.
The tone on the call mirrored Truist's conference two weeks ago, where high investor anxiety about deposit growth was met with less concern from the banks themselves.
Curinos noted that the positive trend in consumer balances per account comes entirely from mid- and high-end consumers, while low-end consumers continue to face challenges.
In terms of regional competition, the Southeast remains intense and Texas is becoming an increasingly competitive market due to merger activity. California was identified as the least competitive market at present.