Short-term deposits to fore as cash accounts halve since 2008
Published 02/04/2010 | 05:00
A breakdown of Anglo's all-important funding base shows that only €34m of its customer deposits mature after five years.
The amount lodged in customer accounts at the nationalised bank has fallen by €21bn to €27.5bn since the end of September 2008 -- the day the state banking guarantee was introduced.
The largest concentration of Anglo's deposit maturities -- at €10.8bn -- ranges in the three months to one-year timeframe.
Part of the decline is attributed to Irish Life & Permanent's controversial €7.3bn of deposits with the then-faltering bank being withdrawn in October 2008.
Borrowings from central banks has surged to €23.7bn by the end of December, from €7.6bn in September 2008, as a result of the decrease in customer and market funding.
"The decrease in customer and market balances has been driven by marketwide risk aversion towards the banking sector in general, bank-specific ratings actions and reputational issues," Anglo said in report.
On a more positive note, the bank said it issued €7.4bn of government-guaranteed bonds during the course of the 15 months to the end of December, including €5.4bn in the second half of last year.
"This issuance more than offset the impact of maturing term deals," the bank said.