Bank Of Hawaii — January 22, 2024 Stable low cost deposits are a bank’s greatest asset. We consider our deposit base to be the crown jewel of the franchise, built slowly over 125 years of our history in the islands, one relationship at a time. As most of you know, Hawaii is maybe the most unique deposit market in the country, where 5 locally headquartered banks hold 97% of the state's FDIC reported deposits. As I mentioned, we have an amazing tenure in our deposit relationships with 53% of our deposits with a tenure of 20 years or more, and 75% of our deposits having a -- of 10 years or more. Despite the volatility created by the regional bank crisis in the first quarter of 2023, both average and spot balances have been steady and growing throughout the year. Further, noninterest-bearing deposits have begun to stabilize, with average noninterest-bearing deposits in December flat to November's month average.
The Australian equivalent is Commonwealth Bank (CBA.AX) - they have a high-quality deposit franchise deriving from a program they ran called 'Dollarmites' which attracted school kids to open savings accounts.
CBA is one of the best banks in the world, in my view. Australia has an oligopoly and competition is relatively low. Trades at >2x book however.
viatris is interesting
Interesting comments on BOH.
The Australian equivalent is Commonwealth Bank (CBA.AX) - they have a high-quality deposit franchise deriving from a program they ran called 'Dollarmites' which attracted school kids to open savings accounts.
CBA is one of the best banks in the world, in my view. Australia has an oligopoly and competition is relatively low. Trades at >2x book however.
It's definitely worth pointing out the Australian housing bubble and various illegitimacies that support it. https://josephnoelwalker.com/housing-bubble-week-john-hempton/
Thanks, Commonwealth Bank was not on my radar.