Banks reduce NPL stock by €1.3 billion in 2023

Spanish banks reduced their portfolio of nonperforming loans (NPL) (NPL) by 1.291 billion euros in 2023, although the NPL remained unchanged at 3.54% due to the fall in the total stock of credit, which was 38.208 billion euros, according to data from the Bank of Spain consulted by Europa Press.

Specifically, the NPL ratio was 3.54% in December, three basis points lower than the 3.57% recorded in November. With respect to December 2022 there has been no change. The annual maximum in 2023 was recorded in October (3.60%), while the minimums were in June and July (3.50% in both cases).

Thus, the total stock of doubtful loans was 41.868 billion euros in December, 1.291 billion less than the 43.159 billion in December 2022. Compared with November, the fall was 549 million euros.

On the other hand, during 2023, the total balance of credit granted contracted by 38.208 billion euros at a year-on-year rate, standing at 1.181 trillion euros. Compared with November, the total credit balance decreased by 5.22 billion euros.

The data broken down by type of institution show that the NPL ratio of deposit institutions as a whole (banks, savings banks and cooperatives) closed 2023 at 3.44%, one basis point lower than in November and also than in December 2022. During the year, these institutions reduced their doubtful assets portfolio by 1.508 billion euros, to 38.768 billion euros.

The NPL ratio of financial credit institutions contracted to 6.33% in the last month of the year, up from 6.97% in October and above the 5.93% of a year earlier. In 2023, this type of institution recorded a rise in doubtful assets of 216 million euros, to a total of 2.908 billion.

According to data from the Bank of Spain, provisions for all credit institutions fell to 29.870 billion euros in December, a decrease of 379 million compared with November (1.25%). Compared with a year earlier, they fell by 1.198 million euros (-3.85%).

Original Story: Bolsamania | Author: Europa Press
Translation and edition: Prime Yield