The volume of non-performing loans (NPL) fell to 37.926 billion, which is 10% less than a year earlier.
According to provisional data published by the Bank of Spain, the Spanish banking sector’s NPL ratio continued to fall in the fourth month of the year, reaching 3.18% — its lowest level since October 2008, when it stood at 2.92%.
This was also a decrease compared to March, when the default rate was 3.21%, and April 2024, when NPL accounted for 3.60% of the credit stock.
The volume of doubtful loans fell to €37.926 billion in April, which is €354 million less than in March and €4.22 billion less than in April 2024.
This decline in NPL is accompanied by an increase in the total amount of loans granted in Spain. During April, the total stock of loans granted was €1.193 trillion, representing an increase of around €2 billion compared to March, and around €22 billion compared to April 2024.
Breaking the data down by type of institution, the NPL ratio for all deposit institutions (banks, savings banks, and cooperatives) was 3.08% in April, which is three basis points lower than the previous month and almost 40 basis points lower than in the same period in 2024.
In absolute terms, this type of institution recorded a €351 million decrease in its NPL portfolio, bringing it to €35.201 billion. Compared to April 2024, this is about €3.702 billion lower.
Meanwhile, credit institutions saw their NPL ratio rise to 5.99%, an increase of 20 basis points compared to March, though the year-on-year reduction remains at over one percentage point.
The volume of NPL for this type of institution was €2.538 billion at the end of April, which is €15 million less than the previous month. Compared to the same month last year, the non-performing balance fell by around €527 million.
Finally, according to data from the Bank of Spain, provisions for all credit institutions totalled €28.548 billion in March, which was a decrease of €37 million compared to the previous month. The year-on-year variation showed a reduction of €1.49 billion.
Original Story: Diário Publico | Author: Europa Press
Edition and translation: Prime Yield