Spain’s NPL rate at its lowest in 12 years

The nonperforming loan (NPL) rate of Spanish banks stood at 4.34% in July, its lowest figure in twelve years, since March 2009.

According to the latest data from the Bank of Spain, the outstanding loan portfolio at the end of July reached 1.220 billion euros, compared with 1.232 billion euros the previous month.

The balance of NPL also fell from 54.218 to 53.644 million, which also contributed to the decline in the indicator.

Since July 2020, when it stood at 4.72%, the NPL ratio has fallen by three tenths of a percentage point.

So far this year, bank NPLs have ranged from 4.55% in February and May to a low in July.

In addition to the total data for the sector, the Bank of Spain publishes each month the aggregate default rate of banks, savings banks and cooperatives (cajas rurales), on the one hand, and, on the other, that corresponding to financial credit institutions (EFCs), which finance the purchase of large consumer goods.

The combined NPL ratio of banks, savings banks and cooperatives also reached an annual low of 4.33%, down from 4.34% in June.

The loan portfolio stood at 1.1172 billion euros, with a volume of doubtful loans of 50.793 million euros, down from 51.356 million euros in June.

In the case of financial credit institutions (FCIs), which specialise in financing large consumer goods, the NPL ratio was also the lowest of the year at 6.50%, with a volume of non-performing loans of 26.250 million euros, down from 26.320 million euros in June, for a loan portfolio of 40.362 million euros.

Original Story: Agencia EFE | Madrid 
Photo: Photo by Victor Iglesias in
Edition: Prime Yield