Housing loans’ stock hit €96.6 billion, hitting a 5 year high

The stock of housing loans totalled €96.9 billion last December, up 1.99% compared to the same month of 2020 and hitting a new maximum since at least 2016, according to Bank of Portugal data.

According to the central Bank latest data, the total amount borrowed on housing loans (€96.9 billion) in December means 1.99% more compared to December 2020 and 0.37% compared to last November.

This is still the highest `stock’ value of home loans since at least December 2016.

Already the ratio of overdue loans on housing was 0.5% in December (the same as November and down from 0.6% in December 2020).

In consumer loans the amount lent in December was €19.2 billion, up 0.23% compared to December 2020 and 0.17% compared to November.

According to the Bank of Portugal, “the pace of growth in consumer loans continues to lag behind the years prior to the pandemic”.

In loans for other purposes were borrowed 8.9 billion euros in the last month of 2021, up 36% from December 2020 and 0.33% more than in November.

Regarding the non-performing loans (NPL), the NPL ratio for Consumer credit and other purposes was 4.5% in December (down from 6.3% in December 2020 and 4.6% in November).

As for companies, 75.7 billion euros in credit were granted in December, in this case up 2.3% year-on-year but down 0.48% on November. In this case, 2.3% of the total amount of loans was in default (down from 3.3% in December 2020).

“This was the lowest value recorded since 2008, extending the downward trend observed since late 2016,” says the Bank of Portugal, adding that the reduction in the NPL ratio is more significant for companies in the construction and real estate activities sectors (it went from 10.3% and 4.8%, respectively, in December 2020, to 7.5% and 2.4% in December 2021).

As for deposits, last December, individuals had deposited €172.9 billion, up 6.8% compared to December 2020. Household deposits are at their highest since at least December 2016.

The central bank highlights demand deposits, as, “at the end of 2021, they represented 48% of the total deposits of private individuals”.

The amount of corporate deposits in banks in Portugal, meanwhile, grew by 17.0% compared to 2020, to €61.8 billion.

“It is necessary to go back to the end of 2010 to find growth rates similar to those seen in the two years of the pandemic,” says the Bank of Portugal.

Original Story: RTP| LUSA 
Photo by Svilen Milev in FreeImages
Translation & Edition:
Prime Yield