The non-performing loan (NPL) ratio of Spanish banks fell to 3.57% in November from 3.60% in October, according to the latest provisional data from the Bank of Spain.

Despite the slight increase, the ratio is still close to the 2008’s lows recorded in the summer, when it stood at 3.50%. Compared with the tenth month of 2022, the bank’s non-performing loan ratio remained 11 basis points lower, when it stood at 3.68%.

The decline in the ratio was due to the increase in total loans, which offset the slight rise in NPLs. Thus, the total stock of loans held by deposit-taking and financial institutions increased by 17 million euro to 42.396 billion euro. Compared with the same month of the previous year, doubtful loans decreased by 2.974 billion euro.

On the other hand, the total amount of loans granted amounted to 1.186 trillion euro, which means that it increased by 9.396 billion euro compared with October and reached its highest level since July. Compared with a year ago, loans contracted by 45.158 billion euro.

The data broken down by type of institution show that the NPL ratio of deposit-taking institutions as a whole (banks, savings banks and cooperative societies) ended November at 3.45%, three basis points lower than in the previous month, but down from 3.59% a year earlier.

The NPL ratio of financial credit institutions rose to 6.97% in the eleventh month of the year, up from 6.93% in October and above the 6.37% of a year earlier.

According to the Bank of Spain, provisions for all credit institutions fell to €30.249 billion in November, down 0.18% on the month and 6.13% on the year.

Edition and translation: Prime Yield
Original Story: Bolsamania | Europa Press
Photo: Unknown