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Irish bank deposits stable in January

Thursday, February 14 11:39:04

Deposits at Ireland's covered banks remained stable in January at E154.3bn, decreasing by around E1.4bn or 0.9pc during the month due to foreign exchange rate movements, latest figures from the Department of Finance show.

On a constant currency basis, underlying deposits were E0.2bn higher month on month in January.

The decrease in headline deposits during January was largely due to the weakening of Sterling against the Euro since December.

Headline UK Retail deposits were down E2.1bn since December with volume fluctuations only accounting for about E0.4bn of the movement and the remainder attributable to unfavourable foreign exchange movements.

Notwithstanding that, some of the decrease in Irish Retail figures of -E0.3bn in January is likely due to seasonal factors such as Revenue payments falling due, the Department said. The cumulative growth for the last 12 months (i.e. Jan 2012 versus Jan 2013) remains strong with headline deposits up E7.1bn (4.8pc) year on year although the pace of year on year increase has moderated somewhat.

The stability in customer deposit volumes among the covered banks comes at a time when the cost of deposit funding is reducing across the banking system as a whole.