Spanish Banks Report Lowest Non-Performing Loan Rate in 15 Years

The non-performing loan rate for loans granted by Spanish banks fell in June to 3.5%, thus falling to its lowest level in fifteen years.

According to the data made public this Friday by the Bank of Spain, the balance of doubtful loans has fallen in a single month by around 655 million euros, to remain at 42,173 million, its lowest level since July 2008, when it was around 41,050 million.

This reduction allowed the weight on the total credit portfolio to be cut by nine basic points, from 3.59% in May to 3.5% at which it closed the first half of the year.

This is a ratio that has not been seen so low since it stood at 3.37% in December 2008.

In the years between 2004 and 2007 this percentage remained in general terms below 1%, to then gradually rise until at the end of 2013 it exceeded 13.6%. Then he began a downward path that continues for the moment.

In year-on-year terms, the non-performing loan rate for loans granted in Spain has fallen by 38 basis points, from 3.88% in June 2022.

The increase in the credit portfolio as a whole also contributed to this drop in arrears, which closed the first half of the year above 1,205 trillion euros, compared to almost 1,192 trillion in May.

By type of entity, the delinquency of banks, savings banks and cooperatives in June has fallen to an even lower level, up to 3.39%, ten tenths less than last May and up to 41 basis points below the level of a year ago. anus.

In contrast, doubtful loans have a weight of up to 6.33% in the credit portfolio of consumer finance companies, 25 basis points below the level of May, but almost double the national average.