Morgan Stanley-US Banks How Willing Is Your Bank to Pay Up for Deposits F...-106805627

MMarch1,202411:03PMGMTMorganStanley&Co.LLCUpdateUSBanksNorthAmericaBetsyL.Graseck,CFA+1212761-8473+1212761-4092HowWillingIsYourBanktoPayEquityAnalyst+1212761-1761UpforDeposits?February2024Betsy.Graseck@morganstanley.com+1212761-1084What'sNew:BankscontinuedtodecreasetheirCDoffersduringthelasttwoweeksMananGosaliaAttractiveofFebruary.Theaveragehighestratepaiddecreasedbyanother2bps.SixbankscutIn-Linetheirhighestrateoverthepasttwoweeks(ALLY,CFR,DFS,GS,SNV,andWBS)EquityAnalystIn-Lineversusonlytwoincreases(MTBandZION).Manan.Gosalia@morganstanley.comRatesonnewCDoffersdecreasedagain:Inthepasttwoweeks,theaverageJeffreyAdelson,CFAhighestratepaiddecreasedanother2bpsto4.91%,whiletheaverage13-36monthratedecreased2bpsto3.51%andtheaverage1-12monthratedecreased2bpstoEquityAnalyst4.78%.Amongtheprimarilyonlinedepositgatherers(ALLY,AXP,COF,DFS,andJeff.Adelson@morganstanley.comSYF),theaveragehighestCDratedecreasedby5bpsto4.82%,whiletheaverageonlinesavingsratewasunchanged.BrianWilczynski,CFAShiftingfocustodownsidebetasastheFedeventuallycutsrates:ThepaceatResearchAssociatewhichbankscanbringdowntheirdepositcostsastheFedcutsratesin2024willbeBrian.Wilczynski@morganstanley.comanimportantdriverofnetinterestincomeoutlooksacrossourcoverageuniverse.Weexpectmostbankstocontinueshorteningtheirliabilitydurationby1)CuttingLargeCapBankslongerdat...