Banks recorded an inflow of customer funds and expect this trend to continue - NBU
Kyiv • UNN
In Q2, the amount of household and business deposits with banks increased significantly. The NBU expects further growth in deposits, lower funding costs, and a lower share of foreign currency deposits.
The volume of household and business deposits in banks increased significantly in the second quarter and banks expect it to grow further in the next quarter. This is evidenced by the results of the quarterly Bank Funding Survey, UNN reports with reference to the NBU.
The NBU also released four interesting findings:
1. In the second quarter, both household and corporate funds and wholesale funding increased.
Financial institutions predict that growth will continue, except for wholesale funding, which will decline.
2️. The average cost of funding continued to decline in the second quarter. This was reported by the largest share of respondents in the history of surveys since the second quarter of 2021.
The decline will continue in the next quarter.
3️. The share of foreign currency funding has declined and is expected to continue to decline.
The maturity of funding declined slightly for the third quarter in a row, with fewer financial institutions reporting this in Q2 than in the previous quarter.
4️. The total amount of banks' capital has increased over the past 12 months. Three-quarters of respondents expect this trend to continue.
Profitability remains a key driver of capital raising in the near future.
For reference
The bank funding survey was conducted from June 17 to July 8, 2024, among bank managers responsible for liability management. A total of 26 financial institutions responded, accounting for 96% of the banking system's total assets. The results of the survey reflect the opinions of the respondents and do not represent estimates or forecasts of the National Bank of Ukraine. The survey on expectations for the fourth quarter of 2024 will be published in October.
