Net new lending to Irish households rose at the fastest pace in more than a decade in September, new figures from the Central Bank showed.
Consumer lending reached €65 million in September. The annual figures showed new lending exceeded repayments by 6.3 per cent or €816 million, the largest annual increase since December 2008. New lending exceeded repayments by €473 million, the largest monthly increase since June 2009.
Loans to households were up 2.2 per cent year on year in September, compared with growth of 0.7 per cent over the year.
Net mortgage drawdowns were €388 million higher than repayments during the month, with annual figures showing on-balance sheet mortgage lending rising by 1.7 per cent or €1.2 billion.
Record high
The data showed household deposits hit a record high of €109.4 billion during the month, while deposits held at banks outstripped loans by €17.6 billion. The increase was driven by overnight deposits, which include current accounts, which showed a net increase of €367 million in September, and a rise of almost €8billion on a yearly basis.
Meanwhile net lending to non-financial corporations reached €499 million in September, with annual figures showing new lending exceeded drawdowns by €1.2 billion on an annual basis.
Growth in lending was driven by medium-term loans with such loans rising by 14.1 per cent on an annual basis.
Deposits from non-financial corporations increased by €253 million in September, with a €625 million increase in overnight deposits and repurchase agreements.
Annually, growth was 11.8 per cent in the 12 months to September.
