New lending to Irish households rises at fastest pace in more than a decade

New lending to Irish households rises at fastest pace in more than a decade

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.

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.

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