Slovakia's annual credit decline deepens to 2.9% in May 2013

By bne IntelliNews July 1, 2013

The total value of outstanding bank loans in Slovakia fell 2.9% y/y to EUR 41.76bn as of end-May 2013, following a 0.3% annual decline in April, which was their first annual decrease since November 2010, data by the central bank showed. Commercial banks' corporate loan book narrowed by 3.9% y/y as of end-May, deepening from a 3.4% y/y decline in the previous month. The yearly growth in lending to households remained flat compared to April at 9.4%.

On a monthly basis, the total value of outstanding bank loans fell 0.7% in May, following a 0.4% decline in April.

In May alone, the Slovak banks extended a total of EUR 1.49bn in new loans, compared to EUR 1.51bn in April and EUR 1.18bn in May 2012.

IntelliNews comment: The lending activity in Slovakia's banking sector weakened last year given the fragile domestic economic situation, deteriorating outlook and mounting risks in the external environment. The outstanding amount of corporate loans fell mainly due to the tightening of credit standards.

We expect the lending market to be sluggish this year as corporate credit growth is set to hold back in line with the economic slowdown, which may also affect retail lending, as demand for loans might dwindle in a weakening labour market. New, stricter bank regulations and increased risks from default are also exerting pressure on the lending market.

Loans granted, outstanding amounts, EUR mn   May-13 Apr-13 May-12 y/y change m/m change
Loans - total 41,762.8 42,048.6 43,013.6 -2.9% -0.7%
Loans to non-financial corporations 15,671.9 15,760.3 16,312.0 -3.9% -0.6%
Loans to households 19,374.4 19,189.7 17,707.3 9.4% 1.0%
Loans for house purchase 17,239.0 17,074.2 15,806.6 9.1% 1.0%
Consumer loans 2,621.5 2,591.7 2,299.7 14.0% 1.1%
New Loans, EUR mn          
New Loans - total 1,490.8 1,507.2 1,177.1 26.6% -1.1%
--operating loans 664.2 697.0 410.0 62.0% -4.7%
--investment loans 59.4 78.7 101.3 -41.3% -24.5%
--consumer loans 128.0 128.3 112.1 14.1% -0.3%
--loans for house purchases 500.5 428.0 419.4 19.3% 17.0%
----mortgages 84.7 79.3 76.1 11.3% 6.9%
----building loans 2.3 2.9 2.8 -20.0% -21.5%
----intermediate loans 48.3 59.0 57.6 -16.2% -18.2%
----other loans for house purchases 365.3 286.8 282.8 29.2% 27.3%
--other loans 138.7 175.2 134.3 3.3% -20.8%
Source: National Bank of Slovakia          

Related Articles

Central European banks eye south-eastern expansion

Banking merger and acquisition (M&A) activity in Central Europe is likely to be further limited by the upturn in the region’s economies, industry sources said in comments published on May 29. ... more

EU to fund feasibility study on Slovakia’s proposed Eastring gas link to Balkans

The EU has agreed to help fund a feasibility study on the Eastring pipeline project, which would link Slovakia to the Balkan markets, Slovak transmission system operator Eustream announced on May 26. ... more

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Dismiss