Ally Bank, TD Bank Win the Race for Retail Deposits, Bank Innovation Finds

Among the 20 largest banks in the nation, Ally Bank, TD Bank, and JPMorgan Chase led the way in deposit dollars gained in the third quarter of 2012 compared to the same period in 2011, according to a Bank Innovation analysis of FDIC data.

Meanwhile, Capital One Financial Corp. and Bank of America Corp. were the greatest gainers in account dollars during the quarter.

Ally’s deposit dollars grew 10.5% during the year that ended September 30, 2012, although its number of accounts grew just 1.6%. TD Bank picked up just under $8 billion in deposits during that time, or 10% of its total FDIC-insured deposits. JPMorgan Chase added about $21 billion to its deposit total during the quarter for a growth rate of 7.5%.

Capital One’s acquisition of ING Direct led to the greatest growth numbers among the nation’s Top 20 banks. The acquisition took place in 1Q 2012, but ING Direct was still on the FDIC’s books in Q2, when Bank Innovation last examined the data on deposit accounts equal to or less than $250,000, the limit for federally insured funds.

Capital One added about $23.5 billion to its funds on deposit in the third quarter of 2012, an increase of 41.3% over the previous  quarter. It also gained close to 3 million new deposit accounts, a rise of 52.3% over last quarter.

Overall, the Top 20 banks added 2.7% to their deposit dollars YOY, while dropping 9.9% of accounts — a significant decline. This continues the trend observed by Bank Innovation last quarter.

Over the past year, Wells Fargo & Co. dropped more than 28 million accounts, 22.9% of its total, but gained just under $13 billion dollars, or 3.1% – a big climb in efficiency.

HSBC took huge hits to its deposit dollars — dropping $10.2 billion, or 20% — and customer accounts, losing more than 1.3 million accounts, or 37.4% , over last year. Losses for the quarter at HSBC were also dramatic: down 343,841, or 13.7% of accounts, and off $4.2 billion, or 9.4% of deposit dollars. Jim Marous called our attention to HSBC’s offloading of branches to First Niagara in late 2011, which could have had a hangover effect into 2012.

Rank in YOY Gains in Retail Deposits at the Top 20 Banks ($-figures in 1,000s)

Rank in QOQ Gains in Retail Deposits at the Top 20 Banks ($-figures in 1,000s)