At the end of June 2022, the total deposits in Croatia equaled HRK 383.8bn, which is an increase of 3.3% MoM, and 12.3% YoY.
Recently, the Croatian National Bank (HNB) published its monthly report on the consolidated financial positions of the monetary financial institutions. In the report we can see that as of the end of June 2022, the total deposits in Croatia amounted to HRK 383.8bn, representing an increase of 3.3% MoM, and 12.3% YoY. This growth continues the positive trend of deposits increasing that has been recorded in the last couple of months, if we exclude March 2022 (which came as a result of the shock posed by the Russian invasion of Ukraine). On top of this, deposits usually increase more significantly in the summer season. In fact, the 3.3% MoM growth is the largest increase since December 2008, while the 12.3% YoY increase is the largest growth since September 2008.
It should also be noted that Croatia is among the EU countries with the highest percentage of deposits held by its citizens, so the single-digit MoM and double-digit YoY growths are not surprising. Also considering that deposits are the most liquid form of assets, especially as compared to other less liquid forms of assets that Croatians hold, like real estate. Finally, the current geopolitical and macroeconomic situation does not bode well for investing in riskier types of assets, so again, the higher amounts held in deposits are to be expected.
Looking at the deposits by their components, on a YoY basis, demand deposits increased by 17.4%, and amounted to HRK 162.9bn. Meanwhile, saving deposits increased by 8.8% YoY and amounted to HRK 220.9bn. The increase was also recorded on the monthly basis, with demand deposits increasing by 3.4%, while the saving deposits grew by 3.2%.
Breaking the saving deposits into domestic and foreign currency deposits, saving deposits in HRK decreased by -11.7% YoY, but still managed a somewhat small increase of 1.1% MoM. This can be attributed to two factors: First of all, as the switch to Euro is to be actualized in January 2023, more and more of the domestic currency deposits are switched into it, while at the same time, the influx of foreign tourists is increasing the demand for HRK, and thus, even though the decrease on a YoY basis is recorded as part of a longer trend, the MoM numbers show a slowing down of this trend. This would also mean that currently, saving deposits in HRK account for 12.99% of all saving deposits, representing a decrease of 0.3 p.p. MoM and 3 p.p. YoY. Meanwhile, foreign currency saving deposits increased by 12.7% YoY, 3.5% MoM, and amounted to HRK 192.2bn. This would mean that in June 2022, they accounted for 87% of all saving deposits, which is an increase of 3 p.p. YoY.
Finally, taking a look at the household deposits, they experienced a 9.7% growth YoY, 1.8% MoM, and amounted to HRK 255.2bn at the end of June. This would also mean that 66.5% of all deposits held were household deposits, representing a decrease of 1% MoM, and 1.53% YoY.
Croatian deposits breakdown (November 2012 – June 2022, HRKbn)
