Bank delinquency falls to 3.88% in June, the lowest since 2008

The ratio falls below 4% for the first time in more than 13 years

MADRID, 26 Ago. (EUROPA PRESS) -

The delinquency of loans granted by all credit institutions to companies and individuals fell to 3.88% in June, marking a minimum since December 2008.

According to provisional data from the Bank of Spain, this is the first month in which the doubtful loans ratio fell below 4% since January 2009.

The figure for June is 30 basis points lower than that of May (4.18%) and is 52 basis points below the doubtful ratio of a year ago, which stood at 4.4%.

The reduction in the non-performing loans ratio of the private sector responds both to an increase in credit granted and to a decrease in the volume of doubtful loans.

Specifically, credit to the resident private sector increased by 12,440 million euros in June, reaching 1,234 billion euros, while the total volume of doubtful loans fell by 3,148 million euros, to 47,916 million euros ( the lowest figure since August 2008).

Compared to June 2021, total credit increased by €2,075 million and doubtful balance decreased by €6,302 million.

The figures include the methodological change in the classification of Financial Credit Institutions (EFC), which since January 2014 ceased to be considered within the category of credit entities. Excluding the change, non-performing loans would stand at 3.98%, since the credit balance was 1.2 trillion euros in June, excluding EFC credit.

The data broken down by type of institution shows that the doubtful ratio of all deposit institutions (banks, savings banks and cooperatives) closed June at 3.8%, compared to 4.08% in May and 4.34% in a year before.

On its side, the default ratio of financial credit establishments stood at 6.22% in the sixth month of the year, below the 7.15% of the previous month and the 6.51% of June 2021.

According to data from the Bank of Spain, the provisions of all credit institutions fell to 33,358 million euros in June, with a decrease of 2,033 million in the month and 6,310 million euros in the year.