Household deposits declined by €1.7 billion in November 2022, new figures from the Central Bank show, marking just the third monthly decline in 2022.
The bank said outflows were a common feature of November, however, with elevated consumer spending occurring in advance of Christmas. Despite the monthly decline, the 12-month flow of deposits remained “strongly positive”, with inflows exceeding withdrawals by €7.8 billion.
Net lending to households arrived at €179 million in the month, continuing a positive trend that had been observed over the previous two months. However, on an annual basis, loans to households recorded a decline of just over €1 billion.
The annual change in loans for house purchases, when including both balance sheet and securitised loans, has remained relatively stable throughout the year, with a current growth rate of minus 1.1 per cent, the Central Bank said.
Net consumer lending saw a decline of €17 million in the month, reversing the large positive net flow recorded in the previous month. Conversely, on an annual basis, drawdowns exceeded repayments by €158 million.
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Loans for other purposes increased in net terms by €112 million, representing the largest monthly net drawdown of loans for other purposes recorded since 2010.
Deposits from households decreased by €1.7 billion in November, reflecting a seasonal trend seen in previous years. In annual terms, net household deposits increased by more than €7.8 billion or 5.6 per cent.
Overnight deposits, which include current accounts, continued to be the driver of the annual increases in household deposits. The percentage of deposits held in overnight accounts is now 94 per cent, the bank said.
Net lending to non-financial corporations (NFCs) was negative in November, contracting by €173 million, the largest monthly decline of 2022. On an annual basis, NFC loan drawdowns exceeded repayments by just under €2.3 billion, an increase of 7.4 per cent.
Deposits from NFCs decreased by €150 million, while in annual terms, NFC deposits increased by €4.5 billion or 6 per cent.
