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Hungarian banksʼ corporate lending down in October

Telco

After rises in the previous two months, the corporate lending stock of Hungarian banks was down in October from September as companies made net repayments on loans while revaluations also decreased the lending stock, fresh data from the National Bank of Hungary (MNB) show, according to Hungarian news agency MTI.

The corporate lending stock dropped HUF 524.8 billion in the twelve months to the end of October to HUF 5.854 trillion, as forint loans rose HUF 51.5 bln while the stock of FX loans dropped HUF 576.3 bln. 

In real terms and based on transactions, the total loan stock was down 3.2% in one year after rising in the previous four months, with forint loans up 6.4% and FX loans down 13.9% year-on-year.

Corporate deposits rose from the previous month, but actually fell if adjusted for seasonal effects.

The corporate lending stock of banks, including bonds, was down HUF 30.6 bln at HUF 5.935 tln according to non-adjusted data. Net borrowing came to HUF 26.4, while revaluations and other changes lowered the lending stock by HUF 4.1 bln

Transactions reduced the stock of forint loans by HUF 23.5 bln and that of foreign currency loans by HUF 2.9 bln. Revaluations decreased the forint loan stock by HUF 2.4 bln and the FX loan stock by HUF 1.8 bln.

The corporate forint loan stock stood at HUF 3.414 tln, while the FX loan stock was worth nearly HUF 2.44 tln at the end of October.

Holdings by credit institutions of bonds issued by non-financial corporations increased by HUF 0.1 bln due to revaluation effects, bringing the stock of bonds to HUF 80.9 bln.

Corporate deposits meanwhile rose by HUF 85.8 bln to HUF 5,938.9 bln in October, according to unadjusted figures, while dropping HUF 11 bln if adjusted for seasonal effects. Placements raised deposits by HUF 78.2 bln and revaluations increased them by a further HUF 6.8 bln, unadjusted figures show. The unadjusted figures show net inflows of HUF 41.7 bln in forint deposits and net inflows of HUF 37.3 bln in foreign currency deposits.

Businessesʼ forint deposits with domestic banks stood at HUF 3.908 tln at the end of October, rising HUF 271.1 bln from a year earlier, while their FX deposits reached HUF 2.0308 tln, rising HUF 151.8 bln.

The euro firmed a slight 0.02% against the forint in the month to the end of October 2016 and weakened 0.18% in one year, calculating with the central bankʼs daily fixing.

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