Retail and corporate lending rose in September

Telco

Retail lending stock of Hungarian banks rose in September from the previous month, continuing an increase that started in the summer of 2016. The stock of corporate loans also continued to rise in September, fresh data from the National Bank of Hungary (MNB) shows.

The retail lending stock rose HUF 20.8 billion to HUF 5.869 trillion during the month. Transactions increased the stock by HUF 24.5 bln and revaluations cut it by HUF 3.7 bln. Households borrowed HUF 25.4 bln of forint loans and repaid HUF 900 million of FX loans in September. All except HUF 40.1 bln of retail loans were denominated in forints, national news agency MTI reports.

The stock of retail deposits rose HUF 3.6 bln to HUF 7.554 tln. Households withdrew HUF 2 bln from forint deposits and withdrew HUF 19.3 bln from foreign currency deposits. FX deposits made up about 17% of all retail deposits at the end of the month.

The MNBʼs transaction-based indices show that lending to households has been growing in real terms since May this year, after a steady contraction that started in September 2009.

Part of the contraction was related to government measures, such as an early repayment scheme for FX mortgages in 2011, compensation from banks to retail borrowers for unfair banking practices and the conversion of retail FX loans into forint vehicles in 2015. Households have been net depositors in real terms every month since December 2014, with a single exception.

Corporate lending stock rose HUF 81.7 bln to HUF 6.414 tln in September. Net borrowing accounted for HUF 35.5 bln of the increase and revaluations and other changes for the rest. Businesses were net borrowers of FX loans but made net repayments on forint loans.

Exchange rate changes added HUF 45.6 bln to FX corporate loan stock and net borrowing another HUF 54.9 bln. The FX stock reached HUF 2.761 tln at the end of the month.

The forint weakened about 0.1% against the euro between the end of August and the end of September, calculating with the central bankʼs daily fixing. Forint corporate loan stock fell HUF 18.4 bln to HUF 3.574 tln.

Corporate deposit stock rose HUF 130.4 bln to HUF 7.031 tln. 

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