Slovakia's annual credit growth turns negative in April 2013

By bne IntelliNews May 31, 2013

The total value of outstanding bank loans in Slovakia fell 0.3% y/y to EUR 42.05bn as of end-April 2013, recording its first annual decline since November 2010, data by the central bank showed. In March, the value of outstanding bank loans grew 1.1% y/y. Commercial banks' corporate loan book narrowed by 3.4% y/y as of end-April, deepening from a 1.5% y/y decline in the previous month. The yearly growth in lending to households accelerated slightly to 9.4% from 9% in March.

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

In April alone, the Slovak banks extended a total of EUR 1.51bn in new loans, compared to EUR 1.57bn in March and EUR 1.41bn April in 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 are also exerting pressure on the lending market.

Loans granted, outstanding amounts, EUR mn   Apr-13 Mar-13 Apr-12 y/y change m/m change
Loans - total 42,048.6 42,230.9 42,159.1 -0.3% -0.4%
Loans to non-financial corporations 15,760.3 15,937.4 16,307.5 -3.4% -1.1%
Loans to households 19,189.7 19,046.6 17,548.4 9.4% 0.8%
Loans for house purchase 17,074.2 16,993.7 15,679.5 8.9% 0.5%
Consumer loans 2,591.7 2,562.8 2,271.5 14.1% 1.1%
New Loans, EUR mn          
New Loans - total 1,507.2 1,574.9 1,414.4 6.6% -4.3%
--operating loans 697.0 822.1 683.6 2.0% -15.2%
--investment loans 78.7 99.1 129.1 -39.0% -20.6%
--consumer loans 128.3 135.5 100.0 28.3% -5.3%
--loans for house purchases 428.0 407.2 412.9 3.6% 5.1%
----mortgages 79.3 68.4 62.7 26.4% 15.8%
----building loans 2.9 1.5 4.0 -28.3% 99.2%
----intermediate loans 59.0 46.3 55.1 7.0% 27.5%
----other loans for house purchases 286.8 291.0 291.1 -1.5% -1.4%
--other loans 175.2 111.0 88.9 97.2% 57.9%
Source: National Bank of Slovakia          

Related Articles

Japan’s Asahi buys a huge round in Central Europe

Asahi has beaten a host of regional heavyweights in the race to buy SABMiller’s Central and Eastern European beer brands, the Japanese brewer announced on December 13. The Asian giant said it ... more

Slovak PM slams media “prostitutes”

Slovak Prime Minister Robert Fico labelled local journalists “anti-Slovak prostitutes” on November 23 as he waded into a case featuring low level corruption allegations only to thrust it into the ... more

Slovak government rejects accusations of corruption over EU presidency events

The Slovak government has rejected accusations that some of its preparations for running the EU's rotating presidency were marred by corruption. Bratislava has been in the headlines since it took ... 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:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

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

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

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.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss