Corporate and household deposits up 10% year-on-year in February
Economist at Eesti Pank
- New loans to companies dropped somewhat in early 2017 compared to a year earlier
- New housing loans grew by 10% in February year-on-year
- Deposits grew faster than the banks’ loans and lease portfolio
The portfolio of loans and leases to companies and households increased in February by 57 million euros to 17.2 billion euros, gaining 6.3% year-on-year.
The growth in corporate loans and leases taken from banks and leasing companies operating in Estonia slowed somewhat in early 2017 but nevertheless remained solid. Corporate loan and leasing portfolio gained 6.8% in February compared to year ago. As corporate borrowing from abroad and from sources other than banks and leasing companies has decreased, the overall level of corporate debt has remained more or less the same. During the first two months of 2017, the volume of new loans to companies has dropped from a year ago.
The housing loan portfolio grew at a pace similar to January, gaining 5.6% year-on-year as at the end of the month. 76 million euros worth of new housing loans were issued in February, up around 10% year-on-year. Lending increased in terms of the number of contracts as well as the average value of contracts. Albeit slowing down somewhat during the first months of 2017, car leasing continues to grow at a fast pace (up 14% in February year-on-year). Overdraft and credit card loans rose 1.2% in February compared to a year earlier.
The volume of loans overdue over 60 days grew slightly, continuing the trend from January, but remained low. Although the volume of loans overdue over 60 days increased to 188 million euros in February, it accounts for only a small share of the loan portfolio (1.2%).
Corporate and household deposits grew strongly, up to almost 10% from a year earlier, which shows that deposits have grown faster than the banks’ loan portfolio. Household deposits increased by around 116 million euros in February, up 8% year-on-year. Corporate deposits showed a 11% gain on the year earlier.