The Central Bank has disclosed fresh data revealing a surge of €4.7 billion, or 3.1 per cent, in Irish households’ deposit funds over a year, concluding at the end of September. The elevation was primarily due to a significant €8.3 billion hike in deposit accounts that had an agreed term of two years or less. This progress managed to balance a decline of €4.4 billion in annual instant deposit transactions.
As of the end of September, the predominance of household deposits remained in overnight deposits, consisting of 87.3 per cent, although there is a gradual dilution in this share. The current pattern, detected since the year’s commencement, is thought to arise from savers’ pursuit of the augmented interest rates provided by term deposits.
The September month alone saw an upturn in household deposits by €159 million, concluding the month with a staggering €157.5 billion, as per the Central Bank. This was propelled by a considerable ascent of €647 million in term deposits over the month, counteracting a tumble in instant deposits worth €476 million.
The total loan advancements to households in September amounted to €544 million. The month exhibited a rise in loans for residential purchases by €470 million and a boost in consumer lending up by €102 million.
Throughout the year, net lending to households rose by €2.6 billion, or 2.6 per cent. Subtracting the effect of repayments on securitised loans, this drops to 2.4 per cent. This was largely fuelled by loans for house purchases and consumer lending, contributing €1.9 billion and nearly €1 billion respectively.
In contrast, net lending to non-financial corporations was recorded as €444 million in September 2024, chiefly driven by short-term lending, which soared by €418 million. Annual lending to these corporations escalated by €1.1 billion, or 3.9 per cent.
The Central Bank also announced the total lending by banks to the private sector in Ireland swelled by €4.3 billion, or 3 per cent, annually, reaching €149.1 billion at September’s close.