Bank of Sydney copes with deposit outflow

Bank of Sydney said it had "anticipated" the outflow of deposits experienced in recent months.

Australian Prudential Authority data show that household deposits at the bank are down A$55 million, or nine per cent, this year. They fell by $4 million in May.

Julie Elliot, chief executive of the bank said yesterday that "Bank of Sydney is one of the most liquid and capitalised banks in Australia.

"Our percentage of high quality liquid assets to liabilities is well above the Australian Banking average. [It stood] at 28.38 per cent at the end of June.   

"Our deposits to loans ratio as of end of May was 115 per cent.
 
"Our deposit movements are part of our overall funding and liquidity strategy, and the variation in our deposit volumes was anticipated."
 
Elliot said that "in relation to the Cypriot crisis, neither this situation nor any other event in foreign countries have affected our operations in Australia.  

"We are owned by Bank of Beirut and have nil exposure to Cyprus or Greece."