By the end of July 2023, the total amount of loans issued by all Croatian financial institutions increased by 5.9% YoY, and 0.3% MoM. At the same time, the average housing loan interest rate increased by 0.18 p.p. MoM, 0.76 p.p. YoY, and amounted to 3.25%. Consumer loan interest rates also grew, by 0.05 p.p. MoM, 1.25 p.p. YoY, and amounted to 5.68%.
The latest update on the developments and changes recorded by the Croatian financial institutions, including the data for the loan and interest rate development has been released by the Croatian National Bank, ending in July 2023. According to the new data, the total loan amount issued by all the Croatian financial institutions amounted to EUR 42.2bn, representing an increase of 0.3% MoM (or EUR 127.9m), and 5.9%, or EUR 2.34bn YoY.
Breaking these changes down even closer, both households and corporate loans continued growing. In terms of the households, the total household loans amounted to EUR 20.9bn, representing an increase of 1.06% MoM (or EUR 219.7m), and 6.11% (or EUR 1.2bn) YoY. At the same time, corporate loans amounted to EUR 14.5bn, an increase of 0.65% (or EUR 93.3m) MoM, and 10.7% (or EUR 1.4bn) YoY.
Corporate and household loans growth rate (January 2015 – July 2023, %)
Source: HNB, InterCapital Research
Looking at the corporate loans more closely, we can see that on a MoM basis, investment loans recorded the largest absolute increase, at EUR 86m, or 1.53%, and amounted to EUR 5.71bn. Following them, we have working capital loans, which grew by EUR 33.6m, or 0.75%, and amounted to EUR 4.5bn. On the other hand, other loans recorded a decrease of EUR 91.1m, or 2.13%, and amounted to EUR 4.19bn. Meanwhile, on a YoY basis, the largest increase was recorded by other loans, which increased by EUR 1.03bn, or 32.6%, followed by investment loans with an increase of EUR 336.9m, or 6.3%, while working capital loans recorded a slight decrease of EUR 10.2m, or 0.23%.
Turning our attention to households, housing loans recorded an increase of EUR 156.3m, or 1.5% MoM, and EUR 888.2m, or 9.3% YoY. The next largest category, consumer loans, recorded an increase of EUR 64.4m, or 0.85% MoM, and EUR 419.9m, or 5.8% YoY.
Composition of Croatian loans to households (October 2011 – July 2023, EURm)
Source: HNB, InterCapital Research
Growth can be seen in the average interest rates on loans as well. In fact, the average housing loan interest rate increased by 0.18 p.p. MoM, 0.76 p.p. YoY, and amounted to 3.25%. The average consumer loan interest rate increased by 0.05 p.p. MoM, and 1.247 p.p. YoY, and amounted to 5.68%, while the average corporate interest rate decreased by 0.13 p.p. MoM, but increased by almost 3.02 p.p. YoY, and amounted to 4.78%.
Average new housing and corporate loan interest rates (December 2011 – July 2023, %)
Source: HNB, InterCapital Research
