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Statistical Press Release - Banking interest rates on new loans and deposits - December 2018

Today, Banco de Portugal publishes statistics, in Table A.10 of the Statistical Bulletin and in BPstat, on banking interest rates on new loans and deposits of non-financial corporations and households for December 2018.

Interest rates on new loans

The average interest rate on new loans granted to non-financial corporations increased by 30 basis points (b.p.) from December 2017, to 2.46%. 

Broken down by segment, and in year-on-year terms, the interest rate on operations below €1 million declined by 20 b.p., to 2.67%, and the interest rate on operations above €1 million increased by 70 b.p., to 2.29% (Chart 1).

In 2018 the volume of new loans granted to non-financial corporations totalled €31.6 billion, corresponding to a €2.7 billion increase from 2017 and reversing the decreasing trend observed since 2014.

In the same period, interest rates on new loans to households continued to show a downward trend, reaching new historical lows in several segments.

The average interest rate on new loans to households for house purchase was 1.41%, a 16 b.p. decrease from December 2017 (Chart 2).

The average interest rates on loans for consumption and other purposes were 6.77% (6.88% in December 2017) and 3.75% (3.26% in December 2017) respectively. In December 2018, the rate on loans for consumption reached a historical low.

In 2018 new loans for house purchase, consumption and other purposes totalled €9.8 billion, €4.7 billion and €1.8 billion respectively.

 

Interest rates on new deposits

In December 2018 the average interest rate on new deposits with a maturity of up to one year of non-financial corporations stood at 0.10%, 4 b.p. less than in December 2017 (Chart 3), a new historical low of this series. In 2018 the overall volume of new deposits of non-financial corporations amounted to €19.6 billion (€25.4 billion in the same period a year earlier), accounting for a new historical low.

In the case of households, in 2018, the volume of new operations corresponded to a new historical low of €60.5 billion, compared to €61.1 billion in 2017. The average interest rate on new deposits with a maturity of up to one year declined by 4 b.p. from the same period a year earlier, to 0.14% (Chart 4).

Next update: 12 Mar. 2019