Link Securities | According to data published by the Bank of Spain and reported by Expansión, the banking sector’s non-performing loans ratio rose in May to 3.59% of total credit, up from 3.55% the previous month, making it two months in a row of increases. However, it remains at the lowest level since December 2008. Compared with the rate in May 2022, the financial sector’s NPL ratio fell by 0.59 points, since it then stood at 4.18%.
The total amount of loans considered doubtful – with at least three consecutive unpaid instalments – stood at €42.815 billion in May, 0.6% more than in April. On a year-on-year basis, non-performing loans declined by 16.2%. The stock of outstanding loans fell below €1.2 trillion after two consecutive months of being above it. In May the balance declined by €8,572 million and in year-on-year terms by €30,383 million.
