State-guaranteed banks saw their consolidated deposits increase in the second half of 2011, gaining 5 per cent, new figures from the Department of Finance showed.
However, they still have some way to go before they return to deposit levels recorded at the start of the year.
The covered lenders - AIB, Bank of Ireland, Permanent tsb and the former Anglo Irish Bank, now known as IBRC - saw deposits rise by €7 billion over the last four months of the year to €147 billion. But between January and June, deposits had fallen from €155 billion to €140 billion, where they remained static until the bounce began in September.
The figures exclude deposits held by the banks from the NTMA prior to the recapitalisation requirements during the year.
In a note this morning, Glas Securities said it was an encouraging sign. "While deposits have yet to return to levels seen at the start of 2011, it is encouraging that deposits with the covered institutions have not only stabilised but are also increasing," analysts said.
