The Central Bank of Ireland has released Ireland’s Money and Banking Statistics for June 2017. Here is an overview of the main findings.
Irish resident household deposits increased by €1 billion during June 2017 to stand at €99.5 billion. The annual growth rate in the series is now 3.7 per cent, the highest seen since 2008. This continues a positive trend which began in 2014.
Net lending of €423 million to non-financial corporates in June represented the highest recorded since September 2011.
Developments in Household credit and deposits
- Loans to households, adjusted for loans sales and securitisations, declined by 1.9 per cent in annual terms to end-June.
- Mortgage loans, which account for 84 per cent of total on-balance sheet loans, increased in net terms by €166 million in June (Chart 1). This follows a net decrease of €135 million in May. In year-on-year terms, net mortgage lending declined by €440 million, or 0.6 per cent.
- Non-housing loans increased by 2.6 per cent in annual terms to end-June, representing eight consecutive months of annual growth. Drawdowns on consumer loans exceeded repayments by €697 million in the year to end-June. The monthly net flow in June was €48 million, up from €40 million in May. Loans for other purposes continued to record negative net flows, with repayments over the 12 months to end-June exceeding drawdowns by €308 million.
- Deposits from households increased in net terms by €1 billion in June, reversing the €657 million decline recorded in May. In annual terms, household deposit lodgements were €3.6 billion higher than withdrawals, representing growth of 3.7 per cent over the year (Chart 2). Household deposits stood at €99.5 billion at the end of the month.
- Developments in loans and deposits mean that Irish households continued to be net funders of the Irish banking system. Banks held €8 billion more household deposits than loans at end-June (Chart 3). In contrast, household loans exceeded deposits by €72.6 billion in May 2008.