JPMorgan Chase, BofA, Wells Fargo see gains; Fifth Third, Comerica and Regions Financial lose ground
Last year, businesses started pulling money from their bank accounts at Fifth Third Bancorp .
In response, the Cincinnati lender started offering higher interest rates to some consumers. But the bank still ended 2017 with slightly fewer deposits, the first drop in seven years.
Welcome to the new world of Main Street banking, where deposits are starting to head out the door after years of growth. This month, major regional banks reported the increasing competition for deposits in their first-quarter earnings. Some lenders, including Dallas’s Comerica Inc. and Regions Financial Corp. of Birmingham, Ala., lost deposits compared with a year ago. Others are still adding deposits, but at a much slower pace than recent years.
“There’s not one of our clients that isn’t very concerned about their commercial deposit portfolio,” said Michael Rice, head of the commercial banking practice at consulting firm Novantas.