Deposits in Irish covered banks down €2.8bn in May
Deposits at the Irish covered banks fell by €2.8bn in May to €150.7bn, according to new figures released this morning by the Department of Finance.
It said that the decline in the headline deposit figure compared to April was due to a decrease in balances held in retail accounts in Ireland. Those declines were spurred by a combination of factors, “notably the lower interest rate environment and the improving funding position of the covered banks, which has eased competition for deposits,” according to the Central Bank.
The institution said that underlying deposits at the covered banks fell €1.8bn in May compared to April when special factors are included. Those factors include a 2pc weakening in sterling, which knocked €700m off the deposit figure, and a reclassification during the month of €300m.
“Adjusting for both of these items, underlying deposits decreased by €1.8bn in during May,” said the Department of Finance.
Year-on-year, underlying deposits other than UK balances were up €700m in the year to date, offset by lower deposits in the UK of €2.4bn.
“The change in deposits in the UK is due to a combination of different strategic actions underway at both AIB and Bank of Ireland,” said the Department.