Household term deposits increased by 20.4 percent in one year

According to monetary statistics published by the HNB, at the end of March 2024, total deposits of domestic sectors amounted to €59.8 billion. Total deposits of domestic sectors decreased by €2.3 billion (or 3.7%) during the first quarter of 2024, while compared to the end of the first quarter of 2023, they increased by €3.6 billion (or 6.3%). This accelerated the annual growth rate of total deposits from 4.3 percent at the end of December 2023 to 6.3 percent at the end of March 2024.

When viewed by sectors, during the first quarter of 2024, a decrease in deposits of non-financial corporations by €1.2 billion (or 6.9%) and households by €0.8 billion (or 2.0%) was recorded, while deposits of the general government slightly decreased.

At the end of March 2024, household deposits amounted to €37.0 billion, non-financial corporations €15.7 billion, and the general government €5.4 billion.

At the end of March 2024, overnight deposits of domestic sectors amounted to €41.4 billion, with households accounting for €26.3 billion, non-financial corporations €11.1 billion, and the general government €3.4 billion. During the first quarter of 2024, a decline in overnight deposits at credit institutions was recorded, with households decreasing by €1.3 billion (or 4.7%) and non-financial corporations by €1.7 billion (or 13.4%).

On an annual basis, total overnight deposits slowed their decline from -4.6 percent at the end of December 2023 to -3.5 percent at the end of March 2024. Meanwhile, the annual decline in overnight deposits of non-financial corporations slowed from -9.5 percent at the end of December 2023 to -6.7 percent at the end of March 2024, while the annual decline in overnight deposits of households accelerated from -1.2 percent at the end of December 2023 to -2.9 percent at the end of March 2024.

At the end of March 2024, term deposits of domestic sectors amounted to €18.4 billion, with household term deposits amounting to €10.7 billion and non-financial corporations €4.6 billion. During the first quarter of 2024, household term deposits increased by €0.5 billion (or 5.4%), while term deposits of non-financial corporations increased by €0.6 billion (or 13.8%).

Total term deposits slightly slowed their growth

On an annual basis, total term deposits slightly slowed their growth from 37.8 percent at the end of December 2023 to 37.7 percent at the end of March 2024. Meanwhile, term deposits of non-financial corporations slowed their growth from 183.9 percent year-on-year at the end of December 2023 to 77.0 percent year-on-year at the end of March 2024. At the same time, the annual growth of household term deposits accelerated from 9.3 percent at the end of December 2023 to 20.4 percent at the end of March 2024.

At the end of March 2024, total loans to domestic sectors amounted to €43.6 billion, an increase of €0.5 billion (or 1.2%) compared to the end of the fourth quarter of 2023 and an increase of €2.0 billion (or 4.8%) compared to the end of the first quarter of 2023. On an annual basis, the growth of total loans to domestic sectors slowed from 6.0 percent at the end of December 2023 to 4.8 percent at the end of March 2024.

When viewed by sectors, at the end of March 2024, loans to households amounted to €22.3 billion. Loans to households increased by €0.6 billion (or 2.5%) during the first quarter of 2024, and compared to the end of the first quarter of 2023, they increased by €2.2 billion (or 10.9%). Of this, during the first quarter of 2024, housing loans increased by €0.2 billion (or 1.7%), and cash non-purpose loans by €0.3 billion (or 3.9%), while all other loans to households increased by €0.1 billion (or 1.8%).

On an annual basis, loans to households accelerated their growth from 9.5 percent at the end of December 2023 to 10.9 percent at the end of March 2024, driven by an increase in the annual growth rate of cash non-purpose loans from 11.1 percent to 12.9 percent, housing loans from 9.9 percent to 10.8 percent, and other loans from 4.1 percent to 5.5 percent. Such growth in cash non-purpose loans was last recorded at the end of February 2019.

Loans to non-financial corporations at the end of March 2024 amounted to €14.6 billion and slightly decreased during the first quarter of 2024 by €0.1 billion (or 0.4%), while compared to the end of the first quarter of 2023, they increased by €0.6 billion (or 4.0%).

On an annual basis, loans to non-financial corporations slowed their growth from 6.3 percent at the end of December 2023 to 4.0 percent at the end of March 2024, mainly reflecting a decrease in the growth of other loans (from 7.6% to -3.6%), while loans for working capital and investment loans accelerated their growth (from 4.7% to 6.1%, and from 6.7% to 7.9%).