The Bank of Portugal released updated statistics on bank loans and deposits of households and companies through February 2025, showing continued acceleration in mortgage lending and a further slowdown in household deposit growth. The annual growth rates reported are calculated from transaction flows only, excluding other effects such as exchange rate movements. Total loans to individuals rose 5.2% year on year, with the stock of housing loans increasing by EUR 698 million from January to EUR 103.5 billion and growing 4.8% year on year, extending a 14-month acceleration trend. The number of mortgage borrowers reached 1.96 million, up 1,800 on the month, the first monthly increase since June 2022. Consumer and other lending rose by EUR 132 million to EUR 30.5 billion and grew 6.8% year on year, with personal credit at EUR 12.7 billion (7.2%), car loans at EUR 8.5 billion (10.0%) and credit cards at EUR 3.2 billion (8.1%). Loans to companies totalled EUR 72.6 billion, up EUR 132 million on the month, and grew 1.2% year on year, with positive growth for micro and large firms (7.3% and 1.7%) and continued contractions for small and medium-sized firms (-0.3% and -4.5%); by sector, construction and real estate grew 5.8% while industries and electricity fell 1.2% and commerce, transport and accommodation fell 0.3%. Household deposits at resident banks increased by EUR 250 million to EUR 192.8 billion, driven by a EUR 242 million rise in sight liabilities and a EUR 9 million rise in term deposits, while the annual growth rate eased to 6.5% (from 6.8% in January) for a fourth consecutive month of deceleration. Corporate deposits rose by EUR 370 million to EUR 68.7 billion and grew 8.8% year on year, the highest annual increase since January 2023. The next update is scheduled for 29 April 2025.

Original source View in tracker