The loan portfolio for house purchase closed the third quarter with a questionable rate of 2.5%the lowest level since mid-2011, according to data on doubtful home loans released by the Spanish Mortgage Association (AHE).
The organization specifies that this tariff involved a gets better 0.2 percentage points from the previous quarter and 0.5 from the third quarter of the previous year. This dynamic is explained by the decline in non-performing exposureswhich recorded a contraction of 13.3% on an annual basis and 4.3% on a quarterly basis, reaching a volume of 12,623 million euro, while the outstanding segment recorded an increase of 0.9%.
In this sense, the AHE recalls the measures, contained in two Codes of Good Conduct, which entered into force in 2023 to alleviate the financial burden of families at risk of vulnerability due to the increase in interest rates. The association underlines that this aid protocol will make it possible to better maintain the credit quality of this mortgage portfolio “despite the horizon of uncertainty that hangs over the economy”.
As for the housing rehabilitation loanthe AHE also observes a significant decrease in dubious assets both on a quarterly (-6.5%) and year-on-year (-16.1%) basis, even above the records seen before the pandemic.
As a result, the bad debt ratio of this item went from the 4.5% observed in the previous quarter or from the 5.3% observed a year ago to 4.3% in this third quarter. A figure below the report presented by the consumer credit portfolio, which increased its rate in quarterly terms, from 4.6% to the current 4.7%, even if on an annual basis it stood at 0.4 dots below.
As for the doubtful credit of the non-financial corporationsthe volume of doubtful loans stood at 4.4% in the third quarter, after decreasing by 0.2 percentage points on a quarterly basis and by 0.5 points on an annual basis.
inside, the doubtful credit balance which includes the construction sector and real estate activities is decliningalthough it has done so at a slower pace than pre-pandemic levels, while retaining strength and jointly declining 13.4% year-on-year this last quarter, with construction down 9.7% and construction down 15% .9% % in the real estate sector.
In relative terms, the construction sector, the second economic sector with the highest doubt rate after the hotel industry, reduced its rate to 7.9% in this third quarter of 2022 from 8.4% in the quarter previous or from 8.7% of the previous year.
In the property assets portfolio, where much of the financial effort has been concentrated since the recession, according to the AHE, the rate stood at 3.9% in the last known quarter against 4.1% recorded in the second quarter of 2022 or 4.4% for the third quarter of fiscal 2021.
At the end of September, the volume of resident private sector doubtful assets reached 46,325 million euros, which implies a decrease of 12.3% on an annual basis in this third quarter of the year. The NPL ratio for households and non-financial corporations improved to 3.8% in the third quarter of 2022, which shows an improvement of 0.1 percentage points in quarterly terms and 0.6 points in annual terms.
