The non-performing loans of Spanish banks rose at the beginning of this year 2024 after two consecutive months of decline. The figure reached 3.61% in January, which means the highest rate since November 2022, mainly due to the fall in the total credit balance. In addition, unpaid loans also grew.
According to data published today by the Bank of Spain, non-performing loans rose by 236 million in the first month of 2024, to 42,104 million, and the credit portfolio decreased to 1,167 billion, compared to 1,181 billion at the end of 2023.
Compared to January 2023, credit delinquency has gone from 3.56% then to 3.61% now, however the balance of doubtful loans has been reduced by almost 800 million.
Delinquency of banks, savings banks and cooperatives
In addition to the total data for the sector, the Bank of Spain publishes each month the aggregate delinquency of banks, savings banks and cooperatives (rural savings banks), on the one hand, and, on the other, that of consumer finance companies.
The default rate of banks, savings banks and cooperatives went from 3.44% in December to 3.50% in January, the highest rate since November 2022, after the balance of unpaid debts grew by 310 million, to 39,078 million.
The 3.50% delinquency figure for January is slightly worse than the 3.48% for the same month in 2023, despite the fact that the balance of unpaid debts since then has fallen by more than 1,000 million. In the case of consumer finance companies, the delinquency ratio also increased, going from 6.33% in December to 6.53% in January.
However, this increase in bad debts among consumer finance companies is explained by the fall in financing in the month, which was 5.46%, up to 43,461 million, despite the fact that the balance of bad debts decreased by 71 million, up to 2,840. millions.
