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Investment funds' NAV rises 1.3%

The BMA's report found banking assets fell in the last quarter.

The total net asset value of investment funds in Bermuda grew by 1.3 percent or $2.37 billion to$183.61 billion during the third quarter of 2010.That is according to the Bermuda Monetary Authority’s Regulatory Update for December 2010, which revealed that while the number of portfolios and funds were down at 1,476 and 938 respectively over the period, the value of the funds continued to climb for the third straight quarter.In the banking sector, however, total assets dropped 2.3 percent from $22.8 billion in the second quarter to $22.3 billion for the third quarter, mainly due to a decline in foreign currency-denominated deposit liabilities of 2.6 percent.Reversing the prior period’s gains, cash and deposits with other banks fell 3.1 percent during the quarter while total loans and advances decreased 3.5 percent. Total investments rose 0.2 percent but declined 5.2 percent year-on-year.Customer deposit liabilities were down 2.6 percent from $19.1 billion in the second quarter to $18.6 billion in the third quarter, representing a 10.4 percent decrease in demand deposits partially offset by increase in savings and time deposits of 4.6 percent and 0.8 percent respectively.Shareholders’ equity for the sector, meanwhile, increased 3.2 percent or $89.5 million over the quarter.The deposit and loan profile for combined banks and deposit companies reflected a decrease in the ratio of Bermuda dollar lending to Bermuda dollar deposit liabilities during the quarter from 144.9 percent to 138.9 percent, while the net foreign currency liabilities of the banks fell 3.7 percent over the same period and net foreign currency assets declined 0.5 percent, resulting in a $507 million drop in net foreign currency deficit for the quarter.Meanwhile the Bermuda dollar money supply contracted by 0.3 percent during the quarter from a year previous, reflecting a nine percent decline in Bermuda dollar notes and coins in circulation, while the decline in deposit liabilities was offset by a fall in cash on hand.