At the end of April 2022, the total deposits in Croatia equaled HRK 366.7bn, representing an increase of 0.6% MoM, 9.4% YoY.

The Croatian National Bank (HNB) has published its monthly consolidated statement of financial positions of the monetary financial institutions. According to HNB, at the end of April 2022, the total deposits in Croatia amounted to HRK 366.7bn, which would mean that on an MoM basis, they grew by 0.6%, while on a YoY basis, they grew by 9.4%. With the current geopolitical situation, the increase in inflation across the EU, prompting the ECB to finally start increasing interest rates going forward in 2022 (something that the Fed has done months ago), this leads to a decrease in investments into financial assets (stocks directly and debt indirectly through various funds), and an increase in deposits as the most liquid type of asset. It should also be noted that traditionally, Croatian households retain higher than average (compared to the EU) deposit levels.

Looking at the deposits by their components, on a YoY basis, demand deposits grew by 16.8% YoY and amounted to HRK 154.5bn, while saving deposits grew by 4.6% YoY, amounting to HRK 212.1bn. This increase was also recorded on the MoM basis, as both demand and saving deposits grew, by 0.7% and 0.4%, respectively.

Looking at the saving deposits by themselves, we can see one other trend continuing. Based on the currency, saving deposits in HRK decreased by -12.6% YoY, -2.6% MoM, and amounted to HRK 28.1bn. This would also mean they amounted to 13.3% of the total saving deposits, a decrease of -2.6 p.p. YoY, 0.42 p.p. MoM. On the other hand, saving deposits in foreign currency increased by 7.8% YoY, 0.9% MoM, and amounted to HRK 183.9bn. This would mean that in April, they amounted to the remaining 86.7%. Considering that Croatia is expected to enter the Eurozone in January 2023, and the dual pricing model is to be implemented in September, the switch towards foreign currency is expected and should accelerate as the date of the ascension closes.

Finally, taking a look at the household deposits alone, they increase by 9.2% YoY, 0.6% MoM, ending the month at HRK 250.2bn. This also means that 68.23% of all deposits held were household deposits, representing a decrease of -0.14 p.p. YoY, but an increase of 0.04 p.p. MoM.

Croatian deposits breakdown (November 2012 – April 2022, HRK bn)