PTSB lose 1 Billion in deposits due to rate cuts

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The PTSB interim financial results are here.

PTSB deposits reduced from 20.4 BN to 19.5 BN YoY. A massive drop which the directors admitted was linked to deposit rate cuts.

Good to see that some depositors are switching their deposits on the back of the aggressive PTSB rate cuts.
 
I imagine there is more to come, as some of these cuts are only becoming effective now. For instance people might leave money in the Bonus Booster until 1 Jan and then remove it.
 
Yeah, there is little doubt that the deposit figure will drop further in the year end accounts. So much for back to basics banking where PTSB match loans with deposits. PTSB still have over 3 BN from the ECB to help cover the excess of loans over deposits.

The PTSB loss of deposits would have been even worse except for the fact that there was a large number of new current accounts opened.
 
PTSB may introduce some sort of new regular saver or something in 2016, or maybe something linked to a current a/c, to get back some of the more mobile savers. Meanwhile those that are not paying attention will have had their rates slashed, so the average cost of deposits will still have come down.
 
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