Corporate lending stock of Hungarian banks up in November – NBH

mnbThe corporate lending stock of Hungarian banks rose in November from the previous month with nearly 30pc of the increase reflecting revaluation effects, fresh data from the National Bank of Hungary show.

In real terms and excluding revaluation effects, the stock of banks’ corporate loans has been rising since the end of 2016.

The corporate lending stock of banks was up HUF 161.5bn at HUF 8,700.2bn according to non-adjusted data. Transactions increased the lending stock by HUF 113.4bn, while revaluations and other changes increased by HUF 48.1bn.

Transactions raised the stock of forint loans by HUF 16.5bn and they raised the the stock of foreign currency loans by HUF 83.2bn. Revaluations cut the forint loan stock by HUF 4.7bn and raised the FX loan stock by HUF 54.2bn.

Holdings by credit institutions of bonds issued by non-financial corporations were down HUF 1.4bn due to revaluations but rose HUF 13.7bn because of transactions, bringing the stock of bonds to HUF 144.7bn.

Corporate deposits meanwhile rose by HUF 389.6bn to HUF 9,264.2bn in November. Deposit placements raised the stock by HUF 365.7bn and revaluations raised it by a further HUF 23.9bn.

According to NBH, there were just HUF 11.9bn net inflows into foreign currency deposits while net inflows into forint deposits reached HUF 353.8bn. Revaluations increased FX deposits by HUF 43.9bn and they reduced forint deposits by HUF 20.0bn.

The euro weakened 1.48pc to the forint between the end of October and the end of November, calculating with the central bank’s daily fixing.