Housing loan growth declined further in January

MFI balance sheet Statistics Thursday 28 February 2013, 1:00 PM

 

Housing loansIn January the stock of euro-denominated housing loans grew by less than EUR 20 m in Finland, which is the smallest monthly change since January 1999. The average interest rate on new housing-loan drawdowns rose notably in January, with an increase in banks’ interest rate margins. The imputed margin was 1.44% in January, compared to 0.92% still at the beginning of 2012. The imputed margin is the difference between the agreed annual interest rate and the reference rate. In Finland, 90% of new housing-loan drawdowns are tied to Euribor rates.

Loans

Households’ new drawdowns of housing loans amounted to EUR 1.1 bn in January 2013, which is EUR 0.1 bn less than a year earlier. The average interest rate on new housing-loan drawdowns was 1.97%, up by 0.01 percentage point on December. At end-January the stock of euro-denominated housing loans was EUR 86 bn and the average interest rate on the stock was 1.59%. The annual growth rate of the housing loan stock moderated further in January, to 5.5 %. At end-January household credit comprised EUR 13 bn in consumer credit and EUR 15 bn in other loans.

New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted to EUR 2.3 bn in January, which is EUR 0.3 bn more than in January 2012. The average interest rate on new corporate-loan drawdowns fell by 0.54 percentage point from December, to 1.48%. At end-January the stock of euro-denominated loans to non-financial corporations was EUR 63 bn, of which loans to housing corporations accounted for EUR 16 bn. The annual growth rate of the corporate loan stock declined by 0.9 percentage point from December, to 4.2%.

Deposits

At end-January the stock of household deposits amounted to EUR 82 bn. The average interest rate on the stock was 0.69%. Overnight deposits accounted for EUR 47 bn and deposits with agreed maturity for EUR 20 bn of the total deposit stock. In January households concluded EUR 2.2 bn of new agreements on deposits with agreed maturity. The average interest rate on these rose to 1.14%, from 1.10% in December.


Notes:
MFIs comprise all monetary financial institutions operating in Finland.
Loans and deposits comprise all euro-denominated loans and deposits vis-à-vis the euro area as a whole, with countries other than Finland accounting for a very small share of total volumes.

 

Key figures of Finnish MFIs' loans and deposits, preliminary data

  Novenber,
EUR million		 December,
EUR million
EUR million		 January,
12-month change1, %
Average interest rate, %
Loans to households2, stock 114,701 114,798 114,718 4.6 1.97
    - of which housing loans 86,140 86,346 86,364 5.5 1.59
Loans to non-financial corporations2, stock 63,528 63,282 63,370 4.2 1.93
Deposits by households2, stock 81,472 82,378 81,859 0.0 0.69
Households' new drawdowns of housing loans 1,590 1,254 1,108 – 1.97

1 Rate of change has been calculated from monthly differences in levels adjusted for classification and other revaluation changes. 
2 Households also include non-profit institutions serving households; non-financial corporations also include housing corporations.

For further information, please contact:

Essi Tamminen, tel. +358 10 831 2395, email: essi.tamminen (at)bof.fi
Jaakko Suni, tel. +358 10 831 2454, email: jaakko.suni (at)bof.fi

The next news release will be published at 1 pm on 2 April 2013.

Related statistical data and graphs are also available on the Bank of Finland website:  http://www.suomenpankki.fi/fi/tilastot/Pages/default.aspx.
 

You can also subscribe to the monthly Loans, deposits and interest rates –newsletter to your email from the Bank of Finland website