Corporate lending up over 10% in 2017
Hungarian banksʼ corporate lending stock rose a transaction-based HUF 615 billion, or 10.4%, in 2017, the National Bank of Hungary (MNB) said in a quarterly report released on Monday. Loans to SMEs were up 11.8%, the MNB said in its Trends in Lending report, cited by state news agency MTI.
Alone in the fourth quarter, the corporate lending stock increased a transaction-based HUF 184 bln. The volume of new contracts signed during the quarter reached HUF 1.116 trillion.
The MNBʼs survey of loan officers showed that a net 16% of banks eased lending conditions in Q4, and almost one-third said tighter competition in the sector had driven the change. About one-fifth anticipate further easing in the coming six months.
A net 56% of loan officers reported a pick-up in demand for long-term loans, while 40% said demand was greater for short-term loans. About 40% foresee further growth in demand at similar rates in both categories.
The central bank noted that the growth in corporate loans last year outpaced that in the Czech Republic (6%), Poland (9%) and Slovakia (8%).
Corporate lending up slightly in January
The corporate lending stock of Hungarian banks in January 2018, meanwhile, was up HUF 6 bln from the previous month, to total HUF 6.574 tln, fresh data from the MNB show.
Transactions increased the lending stock by HUF 6.3 bln in January, while revaluations and other changes reduced it by HUF 0.3 bln.
The stock of forint loans was up by HUF 60.3 bln because of transactions, while that of foreign currency loans was down HUF 53.8 bln. Revaluations decreased the forint loan stock by HUF 0.2 bln, but did not affect the FX loan stock.
Credit institutionsʼ corporate bond stock inched down HUF 0.1 bln due to revaluations and by HUF 0.2 bln because of redemptions, bringing the total stock to HUF 75.9 bln in January.
Corporate deposits fell by HUF 16.5 bln to HUF 7.542 tln in the first month of 2018. Deposits were down HUF 4.7 bln due to transactions and by HUF 11.8 bln due to revaluations.
There were net inflows of HUF 89.8 bln into foreign currency deposits and net outflows of HUF 94.5 bln from forint deposits during the month. Revaluations cut FX deposits by HUF 11.8 bln.
The forint was little changed to the euro at the end of January compared to the end of December, calculating with the central bankʼs daily fixing rate, MTI noted.
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