merrion street

Headline deposits at covered banks remain stable at €153 billion in September, decreasing marginally by c.€0.8bn (-0.5%) due mainly to business as usual outflows. On a constant currency basis, deposits were €0.6bn lower. The main driver of the decrease during September was softer volumes in Corporate deposits and Non-Bank Financial Institutional deposit balances in both Ireland and Overseas locations.

The cumulative growth since the start of the year remains strong with headline deposits up c.€6.3bn (4.3%). The year-on-year increase is €11.1bn or c.8%, although the pace of year on year increase has moderated.

Covered Banks usage of Eurosystem funding at €60 billion (5% of total Eurosystem)

The usage of Eurosystem funding by AIB, BOI and PTSB reduced by a further €0.4bn in August 2012, reflecting the continued progress that is being achieved by the Banks in terms of deleveraging and deposit gathering.

Eurosystem funding to Covered Banks peaked at c.€93bn in January 2011 and has since reduced by 34% or €32bn to €61bn.

Ireland’s share of total Eurosystem funding has declined steadily from a peak in December 2010, immediately after the bailout. The covered banks (excl IBRC) system accounts for c.5.0% of total Eurosystem funding at 30 September 2012, down from a peak of c.18.1%.

Next publication date

15/11/2012 October Deposit note

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