Information release Money and Banking Statistics: January 2013 1

Loans and other credit

28 February 2013

Loans to Irish households decreased at a rate of 4 per cent in the year ending January 2013, following a decrease of 3.9 per cent in December 2012. Lending for house purchase was 1.8 per cent lower on an annual basis at end-January, while lending for consumption and other purposes decreased by 10 per cent over the same period.

Lending to households declined by 816 million during the month of January, following a net monthly decrease of 372 million during December. The change during January was mainly driven by decreases of 405 million and 344 million in housing and consumption related loans respectively. Meanwhile, loans for non-housing and non-consumption purposes were 68 million lower over the month.

The monthly net flow of loans to households averaged minus 484 million in the three months ending January 2013, comprising minus 135 million in loans for house purchase, minus 205 million in loans for consumption purposes, and minus 144 million in lending for other purposes.

Lending to Irish resident non-financial corporations (NFCs) declined by 3.3 per cent in the year ending January 2013, following a decrease of 3.6 per cent in December. During January 2013 loans to NFCs fell by 214 million. The monthly net flow of loans to NFCs averaged minus 104 million in the three months ending January 2013, compared with an average of minus 184 million in the three-month period up to end-December 2012.

Money and Banking statistics are compiled in respect of business written out of all within-the-State offices of both credit institutions authorised to carry on banking business in the State under Irish legislation and credit institutions authorised in other Member States of the EU operating in Ireland on a branch basis. Credit institutions authorised in other EU Member States operating in Ireland on a cross-border basis, i.e. with no physical presence in the State, are not included in the statistics. A full list of Credit Institutions resident in the Republic of Ireland is available on the Central Bank of Ireland website. Recent data are often provisional and may be subject to revision. The extensive set of Money and Banking Statistics tables are also available on the Central Bank website, along with the detailed Money and Banking Explanatory Notes.

% 20.0

Chart 1: Lending to Irish Resident Households, Annual Rate of Change

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The developments in outstanding loans to NFCs during January 2013 were driven mainly by a decrease of almost 1.2 billion in loans with an original maturity over one and up to five years. Short-term loans with an original maturity of up to one year, which include the use of overdraft facilities, rose by 372 million during the month, while longer-term NFC loans, with an original maturity over five years, rose by 583 million.

On an annual basis, NFC loans with an original maturity over five years increased by 2.3 per cent over the year ending January 2013. Short-term loans to NFCs rose by 2.7 per cent in the year, while medium-term loans declined by 16.2 per cent over the same period.

% 25.0

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Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13

Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13

Total Lending to Households

Loans for House Purchase

Loans for Consumption and Other Purposes

Chart 2: Loans to Irish Resident Non-Financial Corporations, Annual Rate of Change

Up to 1 Year

Over 1, Up to 5 Years

Over 5 Years

Total

Credit institutions holdings of debt and equity securities issued by the Irish private sector declined by 295 million during the month of January 2013, following a decline of 8.1 billion for December 2012. The annual rate of change for the year ending January 2013 was minus 16.9 per cent. The modest fall in holdings of private-sector securities over this period reflects developments in holdings of debt securities issued by other financial intermediaries (OFIs), which fell by 274 million in January 2013.

Deposits and other funding Irish resident private-sector deposits rose at an annual rate of 3.7 per cent in January 2013, following a 2.5 per cent increase in the year ending December 2012. Deposits from households were 1.2 per cent higher on an annual basis at end-January 2013, while deposits from insurance corporations and pension funds (ICPFs) and OFIs increased by 8.2 per cent. Deposits from NFCs rose by 5.2 per cent over the same period. There was a month-on-month increase of almost 1.4 billion in Irish resident private-sector deposits during January 2013, reflecting increases across all four of the depositor sectors. Household and NFC deposits increased by 33 million and 120 million, respectively, while deposits from OFIs and ICPFs increased by 400 million and 815 million, respectively. Private-sector overnight deposits rose by 27 million during January 2013, mainly driven by developments in the OFI sector, where overnight deposits increased by 100 million. Overnight deposits from NFCs also rose during January, by 69 million. Meanwhile, overnight deposits from households and ICPFs fell during the month by 58 million and 84 million, respectively. Deposits with agreed maturity up to two years rose by 1.4 billion in January 2013; compared with a fall of 173 million for December 2012. The substantial increase in this category was reflected across all four depositor sectors. The most pronounced increase was recorded in the ICPF sector, where deposits with agreed maturity up to two years rose by 983 million in January 2013. OFI, household and NFC deposits in this category showed more moderate increases of 195 million, 191 million and 78 million, respectively. Longer-term savings products covering deposits with agreed maturity over two years decreased by 82 million during the month of January, lowering the annual increase in this category to 31.6 per cent. Developments in January were driven by decreases in deposits from three of the four sectors. The most substantial decrease was recorded in the ICPF sector, falling by 84 million. Deposits from households and NFCs also fell, by 24 million and 18 million, respectively. Meanwhile, deposits from OFIs showed a modest increase of 43 million in January 2013.
3

Private-sector deposits from non-residents declined by 1.1 billion during January 2013. Other euro area private-sector deposits fell by 271 million, while private-sector deposits from non-euro area residents fell by 822 million over the month. Total non-resident private-sector deposits had fallen by 8.1 per cent on an annual basis at end-January 2013, with deposits from other euro area private-sector entities being 14.7 per cent lower, and those from the non-euro area private sector 3.7 per cent lower.

% 20.0 15.0 10.0 5.0 0.0 -5.0 -10.0 -15.0 -20.0 -25.0 -30.0

Chart 3: Private-Sector Deposits, Annual Rate of Change

Credit institutions borrowings from the Central Bank as part of Eurosystem monetary policy operations fell by 4.3 billion in January 2013. The outstanding stock of these borrowings amounted to 67.1 billion at end-January. Domestic market credit institutions 2 accounted for 55.7 billion of this total outstanding stock.

Domestic market credit institutions are those who have a significant level of retail business with Irish households and NFCs, and would exclude the more internationally focused banks in the IFSC. A full list of these institutions is available in the Credit, Money and Banking section of the Statistics portal of the Central Bank of Ireland website.

Jun 08 Jul 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 Mar 09 Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13

Total

Irish Resident

Non-Resident

Table A.1 Summary Irish Private-Sector Credit and Deposits

Credit Advanced to Irish Private Sector Households Loans for house purchase Outstanding amounts - million 2012 Aug 106,825 Sep 106,728 Oct 105,835 Nov 105,216 Dec 111,076 2013 Jan 110,255 Transactions - million 2012 Aug Sep Oct Nov Dec 2013 Jan 79,508 79,355 78,810 78,740 84,973 84,543 Consumer loans Other loans NFCs Loans Securities ICPFs and OFIs Loans Securities Irish Private Sector Deposits Total Households NFCs ICPFs and OFIs

14,689 14,767 14,500 14,254 14,206 13,906

12,628 12,606 12,525 12,223 11,897 11,806

86,090 85,622 85,092 84,942 84,431 83,629

85,902 85,470 84,941 84,781 84,305 83,507

188 151 151 161 126 122

117,913 116,541 116,463 115,937 106,656 104,086

41,337 40,534 40,193 39,950 38,806 37,582

76,576 76,007 76,270 75,987 67,851 66,504

167,872 166,682 168,136 166,504 166,475 167,450

92,214 92,585 92,493 92,176 92,391 92,369

30,712 30,020 31,369 30,198 30,888 30,870

44,946 44,077 44,274 44,131 43,195 44,211

-500 -88 -515 -264 -372 -816

-151 11 -184 3 -4 -405

-72 -95 -263 -228 -44 -344

-277 -4 -68 -39 -324 -68

-202 -394 -455 297 -386 -218

-234 -358 -455 287 -385 -214

32 -37 0 9 -1 -4

-273 -967 45 -419 -9,072 -1,196

-124 -532 -240 -218 -975 -905

-149 -435 285 -201 -8,097 -291

1,582 -945 1,541 -1,603 623 1,368

268 393 -81 -314 231 33

273 -629 1,328 -1,137 735 120

1,042 -709 294 -153 -343 1,214

Growth rates - per cent per annum 2012 Aug -3.7 Sep -3.7 Oct -3.7 Nov -3.6 Dec -3.9 2013 Jan -4.0

-2.1 -2.0 -1.9 -1.6 -1.6 -1.8

-10.8 -10.7 -11.0 -11.7 -11.9 -11.9

-5.2 -5.4 -5.5 -5.8 -7.7 -7.7

-3.1 -4.2 -4.2 -3.9 -3.6 -3.2

-3.2 -4.2 -4.2 -3.9 -3.6 -3.3

31.3 1.8 4.1 10.0 0.3 0.8

-9.6 -8.7 -6.7 -6.7 -13.9 -14.4

-9.1 -10.1 -7.0 -6.3 -8.0 -9.4

-9.9 -7.8 -6.6 -6.9 -16.9 -17.0

0.7 1.8 2.4 2.2 2.5 3.7

0.8 0.7 0.4 1.4 1.1 1.2

-0.5 -1.2 1.7 -1.5 1.1 5.2

1.3 6.3 7.3 6.8 6.9 8.2

Annex 1: Money and Banking Statistics Tables The tables below, along with a detailed set of explanatory notes are accessible in the Credit, Money and Banking section of the Statistics portal of the Central Bank of Ireland website.

Table A.1: Summary Irish Private Sector Credit and Deposits Table A.2: Financial Statement of the Central Bank of Ireland (formerly Table C2) Table A.3: Money Supply Irish Contribution to Euro Area Table A.3.1: Money Supply Irish Resident Table A.4: Credit Institutions Aggregate Balance Sheet (formerly Table C3) Table A.4.1: Domestic Market Credit Institutions Aggregate Balance Sheet Table A.4.2: Covered Institutions Aggregate Balance Sheet Table A.5: Loans to Irish Private Sector Sector and Maturity Table A.5.1: Loans to Irish Households Purpose and Maturity Table A.6: Loans to Irish Residents Outstanding Amounts (incl. Securitised Loans) Table A.7.1: Loans to Non-Residents Other Euro Area Table A.7.2: Loans to Non-Residents Non-Euro Area Table A.8: Securities Held by Credit Institutions Issued by Irish Residents Table A.9: Securities Held by Credit Institutions Issued by Non-Residents Table A.10: Private Sector Credit Advanced to Irish Residents (formerly Table A2.2) Table A.11: Deposits from Irish Private Sector Category Table A.11.1: Deposits from Irish Private Sector Sector and Category Table A.12.1: Deposits from Non-Residents Sector Table A.12.2: Deposits from Non-Resident Private Sector Sector and Category Table A.13: Credit Card Statistics (formerly Table C14)

A full list of Credit Institutions resident in the Republic of Ireland, as well as the subset of domestic market credit institutions is available on the Central Bank of Ireland website referred to above.