Deposits remained flattish in April

Deposits (domestic enterprises & households) remained flattish (-0.3% m-o-m) to €119.3bn in April’17, while dropped by 2.0% on a y-o-y basis according to the latest data released by Bank of Greece.This followed the +0.2% m-o-m (-1.8% y-o-y) movement exhibited in March‘17.

Moreover, deposit net flows turned negative on outflows of €0.1bn in April‘17, from inflows of €0.3bn in March‘17, thus bringing cumulative deposit outflows at €39.8bn since end-November ’14.

Going forward, we consider the completion of the 2nd review and the inclusion of Greece into ECB’s QE as important steps towards the restoration of the impaired depositor confidence.

That said, the latter, along with the easing and ultimately the full lifting of capital controls should be a gradual process, in our view, sensitive to any political/macro developments.