You win some and you lose some.
Flipping through market share statistics shows a riot of steps forward and steps back, with a bank’s deposit growth outstripping competitors’ in some markets and falling short in others. Few banks notch across-the-board gains in their major markets and managing the feat in successive time intervals is even rarer. (The following graphic compares changes in deposits held by each institution in a group of 59 banks in large markets versus changes in total deposits in the markets. Text continues below.)
U.S. Bancorp (USB) has done well. In its 20 biggest markets, its deposits grew faster from 2011 to 2012 than total deposits in all but three of the markets. (Deposits are reported to the Federal Deposit Insurance Corp. annually at June 30, though the data isn’t available until the fall. Figures for 2012 reflect changes for pending and completed acquisitions through July 23 using SNL Financial data.)
JPMorgan Chase (JPM) has also performed admirably, falling behind in only one of its 20 biggest markets — Portland, Ore. — where its 6.3% growth compared with market growth of 7.5%.
The data excludes branches with more than $1 billion of deposits to reduce distortions from unusually large stockpiles of customer money held at a relatively small number of locations. JPMorgan Chase used the same criteria in an investor presentation in February, where it touted its success in gaining market share.
Over a longer time frame, U.S. Bancorp and JPMorgan Chase performed well in their largest metropolitan statistical areas, or economically integrated regions around urban cores with a populations of 50,000 or more. For instance, from 2007 to 2012, U.S. Bancorp’s growth rates in the Minneapolis and St. Louis markets roughly doubled each market’s growth overall.
Including smaller markets, JPMorgan Chase’s record is still good, though not quite as good. From 2007 to 2012, the company’s deposits around Austin, Texas, grew by 1.6%, compared to 26.8% for the overall market.
At Bank of America (BAC), which recently announced several deals to sell branches to smaller banks, the picture is less favorable, with a growth rate that lagged deposit growth overall in several markets, meaning that B of A lost market share. Bank of America fell short in the Los Angeles market in the 2011-2012 and 2007-2012 periods, for instance, although it gained ground in the Boston market during those time frames.
Broadly, the data shows that there are many flanks in the war for deposits.