• Corporate loan and leasing portfolio grew 6.3% year on year, comparable to the previous months
• The number of new housing loan agreements signed in May was 12% up from last year
• Both corporate and household deposits continued to show a strong growth 

Corporate and household borrowing from the banks and leasing companies operating in Estonia increased in May 6.3% year on year, in line with the previous months. While y-o-y growth in the corporate loan and lease portfolio slowed slightly relative to the previous months, housing loans were gathering pace. The total loan and leasing portfolio increased in the month by EUR 90 million to EUR 17.5 bn.

The corporate loan and leasing portfolio increased in May by 6.3% year on year. The fastest rise was recorded for companies in the trade, agriculture and transport and warehousing sectors. New long-term loans were issued to companies in the value of EUR 237 million, 7% up from last year’s figure. Manufacturing companies have taken more long-term loans in the recent months than a year ago.

The y-o-y growth in the housing loan portfolio increased to 6.1% in May. The number of housing loan agreements signed was 12% up from last year’s figure, while the average loan amount grew by 4%. Similarly to previous months, household car leasing went up in May, gaining 14% on a year earlier. The demand for loans and leases is backed by a relatively rapid growth in household income and low interest rates.

The average interest rate on housing loans has not changed in the past months. Since February, the average interest rate for new housing loans has stood steady at 2.3%. The average interest rate for corporate loans was 2.4% in May, also in line with the average figure for recent months.

Deposit growth was picking up and continues to outpace the growth of the loan and lease portfolio. Corporate deposits grew in May by 15% compared to a year earlier. Household deposits have similarly shown a strong growth, increasing in May by nearly 9% year on year. By contrast, non-resident deposits have shrunk significantly in recent months and stood at EUR 1.5 bn as of the end of May, representing 11% of the total deposit stock.

The financial sector statistics and publication calendar are available on Eesti Pank website

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