Guernsey Banking Deposits Increase
Friday, November 25, 2011

Total deposits held by Guernsey banks at the end of September 2011 increased in sterling terms by GBP0.3bn from the end of June 2011 level of GBP113.9bn up to GBP114.2bn.

The increase represents a 0.2% increase over the quarter though it is still down 1.6% year on year. Total assets and liabilities increased by GBP0.3bn to GBP139.5bn representing a 0.2% increase over the quarter and this was 1.0% higher than the level a year ago.

Swiss fiduciary deposits decreased by GBP1.1bn to GBP39.3bn in September and these now represent 34.4% of all deposits with seven banks in Guernsey currently active in this area of business.

Deposits in US Dollars decreased by 1.4%, deposits in Euros decreased by 1.1% and deposits in Swiss Francs decreased by 1.6%. Deposits in Sterling increased by 0.8%. This led to some movement in the overall currency mix. The proportion of deposits in sterling increased slightly to 23.8% and deposits in US Dollars increased to 47.7%, while Euro deposits decreased to 20.1% and Swiss Franc deposits decreased to 4.1%.

No new banking licences were issued during the quarter but two banks surrendered their licences. Close Bank Guernsey Limited surrendered its licence following its amalgamation with Kleinwort Benson (Channel Islands) Limited while D.A.H. Hambros Bank (Channel Islands) Limited surrendered its licence as its original business rationale was no longer viable.

Philip Marr, Director of Banking commented: “Although deposits were slightly up in sterling terms over the quarter because of exchange rate factors this does not reflect the underlying story. In their base currencies the component parts showed decreases in US Dollars, Euros and Swiss Francs. Business in sterling however was up somewhat. This lower level of currency business reflected a resumption in the downward trend of Swiss fiduciary deposits and a general deleveraging across the banking sector.”