Morgan Stanley-US Banks How Willing Is Your Bank to Pay Up for Deposits M...-106552537

MFebruary15,202410:06PMGMTMorganStanley&Co.LLCUpdateUSBanksNorthAmericaBetsyL.Graseck,CFA+1212761-8473+1212761-4092HowWillingIsYourBanktoPayEquityAnalyst+1212761-1761UpforDeposits?Mid-MonthBetsy.Graseck@morganstanley.com+1212761-1084UpdateFebruary2024MananGosaliaAttractiveWhat'sNew:BankscontinuedtodecreasetheirCDoffersduringthefirsttwoIn-LineweeksofFebruary.Theaveragehighestratepaiddecreasedbyanother1bp,whileEquityAnalystIn-Lineratesonlonger-datedCDoffers(13-36months)fellby5bpsversus2bpsforManan.Gosalia@morganstanley.comshorter-datedoffers(1-12months).Fivebankscuttheirhighestrateoverthepasttwoweeks(ALLY,BOKF,C,DFS,andGS)versusonlyoneincrease(BKU).JeffreyAdelson,CFARatesonnewCDoffersdecreasedagain:Inthepasttwoweeks,theaverageEquityAnalysthighestratepaiddecreasedanother1bpto4.93%,whiletheaverage13-36monthJeff.Adelson@morganstanley.comratedecreased5bpsto3.53%andtheaverage1-12monthratedecreased2bpsto4.80%.Amongtheprimarilyonlinedepositgatherers(ALLY,AXP,COF,DFS,andBrianWilczynski,CFASYF),theaveragehighestCDratedecreasedby7bpsto4.87%,whiletheaverageonlinesavingsratewasunchanged.ResearchAssociateBrian.Wilczynski@morganstanley.comExpectdepositpricingpressuretocontinueeasingwiththeFedonpause:WeexpectbankstocontinuecuttingofferratesfornewCDswiththeFedonpause,LargeCapBankshelpingtodrivelowerdepositpricingpressureacross...