Deposits of Credit Institutions End 2020 with a 9.4% YoY Increase

Total deposits in Croatia amounted to HRK 329.36bn, up by HRK 28.2bn in 2020.

According to consolidated statement of financial position for monetary financial institutions monthly published by Croatian National Bank (HNB), total deposits as of end 2020 amounted to HRK 329.36bn, representing a very solid increase of 9.4% YoY, while increasing +0.8% MoM. We note that this level of savings represents once again an all-time high, which indicates unwillingness of Croatian citizens to invest in riskier asset classes.

Such an increase could be attributed to a high growth of demand deposit money which increased by 18.9% YoY to HRK 126.2bn and which accounts for 38% of total deposits. The aforementioned increase does not come as a surprise as in the times of uncertainty demand deposits usually grow the most. In other words, 2020 was marked by lower spending and higher savings, which is an expected behavior during a crisis.

The increase was further backed by a rise in savings deposits, which amount to HRK 203.13bn (+2.5%). Meanwhile, local currency savings deposits have observed a decrease of -2.5% YoY and currently account for only 15.4% of total savings deposits. To be specific, local currency savings deposits amount to 31.2bn, while roughly 70% of them are pertaining to households. Also, Kuna savings deposits account for 9.5% of total deposits, while Foreign currency savings deposits account for 84.6% of all savings deposits and 52.2% of total deposits. Foreign currency saving has increased by 5.5% YoY, while showing a MoM decrease of 1.1%.

When observing solely households, they hold HRK 224.54bn in deposits, noting an increase of 3.2% (or HRK 18.83bn). We note that foreign currency deposits account for the vast majority of deposits (61%).

Deposits in Credit Institutions (HRK bn)