Bank of America Is Still the King of Deposits

Say what you will about Bank of America (NYSE: BAC  ) and its shoddy reputation -- I, for one, have said my fair share -- but one thing continues to hold true: People love giving it their money.

Data released by the FDIC this week showed that the nation's second largest bank by assets has once again secured its place as the king of deposits. At the end of the second quarter, it reported an industry-leading $1.15 trillion in deposits, equating to a 12.2% share of the national market.

It's hard not to appreciate this feat. Banks were effectively banned from owning and operating out-of-state branches until the 1970s. As the laws and regulations loosened up over the next four decades, a race for national market share ignited, culminating in a series of "mergers among equals" that produced the banking behemoths of today.

And after all was said and done, Bank of America stood atop its peers.

The question now is whether it will continue to do so in the future. The biggest threat comes from the next two depository institutions on the list, Wells Fargo (NYSE: WFC  ) and JPMorgan Chase (NYSE: JPM  ) . Both emerged from the financial crisis in better shape than Bank of America did and have since sought to capitalize on that advantage.

You can see this in the year-over-year growth of deposit balances. While Bank of America's total deposits grew by 1.55% over last year, Wells Fargo and JPMorgan's grew by 9% and 10%, respectively. Even Citigroup (NYSE: C  ) , the long-considered basket case of Wall Street, notched an impressive 13% uptick in deposits compared to 2012.

Whichever way you look at it, however, it's Bank of America's crown to lose.

How to find the next bank stock home run
Have you missed out on the massive gains in bank stocks over the past few years? There's good news: It's not too late. Bargains of a lifetime are still available, but you need to know where to look. The Motley Fool's new report "Finding the Next Bank Stock Home Run" will show you how and where to find these deals. It's completely free -- click here to get started.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2667358, ~/Articles/ArticleHandler.aspx, 9/27/2016 5:16:18 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 8 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:01 PM
BAC $15.09 Down -0.43 -2.77%
Bank of America CAPS Rating: ****
C $45.89 Down -1.26 -2.67%
Citigroup CAPS Rating: ***
JPM $65.78 Down -1.47 -2.19%
JPMorgan Chase CAPS Rating: ****
WFC $44.88 Down -0.86 -1.88%
Wells Fargo CAPS Rating: ****