The volume of loans and leases to Estonian companies and households was the same at the end of August as in July at 15.8 billion euros. This meant the financing portfolio had increased by 3.5% since August last year.
Annual growth in loans and leases to companies stood at 3.1% in August. Lending has increased fastest in recent months to companies in trade, infrastructure and manufacturing. The loan portfolio for real estate development companies grew rapidly in the first half of the year, but that growth has now slowed somewhat. The portfolios for companies in logistics and agriculture shrank however, as those sectors have been affected by the difficult external environment and by problems within the sectors.
The volume of housing loans increased over the year to August by 3.9%, which was about the same as in the preceding months.Growth in new housing loans was slower than in spring and early summer, but 10% more was issued in loans in August than a year previously. The volume of other loans and leases to households grew by 4.4% over the year, with the growth led by car leases, which increased by 13% in volume.
There was a slight increase in August in loans not repaid on time, but the total volume remains small. The share of loans overdue by more than 60 days in the loan portfolio was 1.7% at the end of the month. Loan quality has mainly declined in recent months for companies in manufacturing and agriculture, while it has improved for real estate companies.
The interest margins on long-term loans to companies fell slightly in August, while those on housing loans increased, as has been the case throughout the year. The average interest rate for new long-term loans taken by companies was 2.2%, while the rate for housing loans rose to 2.3%.
Growth in corporate and household deposits remains fast. Corporate deposits increased by 9.6% over the year to August to 4.7 billion euros. Total household deposits stood at 5.6 billion euros at the end of August, which was 7.6% more than a year earlier.
Economist at Eesti Pank