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Banksʼ corporate, retail lending up in August

The corporate lending stock of Hungarian banks rose in August from the previous month, lifted by outlays as well as revaluations, fresh data from the National Bank of Hungary (MNB) show. Banksʼ retail lending stock also rose in August, while the value of home loan contracts was up 27.1% year-on-year.

The corporate lending stock of banks rose HUF 133 bln in August, to HUF 7,307.5 bln. Net lending boosted the stock by HUF 80.2 bln, while revaluations and other changes, such as write-downs, raised it by HUF 52.8 bln.

The stock of forint loans rose HUF 73.6 bln to HUF 4,070.2 bln on the back of outlays. The stock of FX loans climbed HUF 57.6 bln to HUF 3,152.7 bln, rising on HUF 51.4 bln of revaluations and net lending of HUF 6.2 bln. Banksʼ holdings of corporate bonds was little changed at HUF 84.6 bln.

Corporate deposits rose by HUF 215.9 bln to HUF 8,324.5 bln in August. Companies were net depositors of HUF 181.0 bln, and revaluations raised the stock a further HUF 34.9 bln.

Companies placed net HUF 126.3 bln in forint deposits and net HUF 54.7 bln in FX deposits. Revaluations boosted the FX deposit stock a further HUF 38.2 bln. 

Retail lending stock up HUF 52 bln

The retail lending stock of Hungarian banks rose HUF 52 bln to HUF 6,026.1 bln in August from the previous month, MNB data show.  

Net lending raised the stock by HUF 52.6 bln, but revaluations and other changes, such as write-downs, reduced it by HUF 0.6 bln.

The stock of retail deposits rose HUF 58.7 bln to HUF 8,454.1 bln. Net HUF 42.1 bln was placed in forint deposits, but account holders made net withdrawals of HUF 3.8 bln from FX deposits. Still, the FX deposit stock was lifted by HUF 20.3 bln in revaluations.

Meanwhile, Hungarian banks signed contracts for HUF 81.1 bln of home loans in August, 27.1% more than in the same month a year earlier, albeit 2.2% less than in July, the MNB revealed.

Outlays in August were 24.5% over the average monthly outlays in the previous twelve months. The average annual percentage rate on home loans, weighted for credit size, stood at 4.97% in August, up from 4.69% in July, and 4.65% in August 2017.

The euro strengthened by 1.6% to the forint between the end of July and the end of August, calculating with the central bankʼs daily fixing.