As of end July, total financial institution’s loans amounted to HRK 271.26bn, which represents a 7.5% increase YoY and a 0.4% decrease MoM.
Croatian National Bank (HNB) published their monthly statistical report on loans placement of other monetary financial institutions. According to the monthly statistical report as of end July, total financial institution’s loans amounted to HRK 271.26bn, which represents a 7.5% increase YoY and a 0.4% decrease MoM.
Its biggest categories household loans and corporate loans evidenced growth of 4.1% YoY and 4.9% YoY, respectively. Note that corporate loans have since April been observing a negative trend, recording MoM decreases. As of end July, corporate loans amount to HRK 85.57bn, representing a decrease of 0.83% MoM.
Total loans issued to households amounted to HRK 134.97bn, representing an increase of 4.1% YoY (or HRK 5.26bn). Such an increase was mainly driven by a rise in housing loans (+8.8% YoY or HRK 4.86bn) and consumer loans (+2.7% YoY or HRK 1.38bn). It is worth noting that these two items account for 83.5% of the total loans to households. The mentioned increase was partially offset by a decrease in almost all other loan segments. It is worth noting that car loans observed a sharp drop of 20.7% or HRK 120.6m. This does not come as a surprise, given the low car sale trend which has been observed throughout this year.
Loans to Households (Jan 2016 – July 2020) (HRK bn)
If we were to compare total loans issued to households since the beginning of the pandemic, one can notice a slight decrease of 0.3% or HRK 398m. Such a decrease mostly came on the back of a decrease in consumer loans of 2.2% or HRK 1.165bn, while being somewhat offset by an increase in housing loans by 1.7% or HRK 1bn. Meanwhile. the majority of other loan segments also recorded a decrease in the observed period. It is worth noting that we expect consumer loans to further decrease by the end of the year, given the shaken consumer confidence caused by the Covid-19 crisis. This has been a steady trend since the outbreak of the pandemic (when observing MoM development). On the flip side, housing loans continue recording MoM increases, with the exception of April (lockdown period), when housing loans observed a 0.6% decrease.
Structure of Loans to Households (July 2020)
