Exceptionally large corporate loans disbursed in Aug

A large volume of EUR 3.3 billion of new loans drawn to non-financial corporations1 from credit institutions operating in Finland in August, said the Bank of Finland.

The average interest rate on new drawdowns decreased from June, to stand at 1.59% in August, due to the decline of interest rates on large loans, that is, over a million euro.

The volume of large loans drawn down in August was EUR 2.9 billion, accounting for 87% of all corporate loan drawdowns.

The average interest rate on new large loans was 1.26% in August. The companies that took out new loans in August mainly operated in the manufacturing sectors.

The volume of corporate drawdowns in the last 12 months is exceptionally high (EUR 28 billion. The growth of new drawn-downs was driven in particular by the funding need of energy and manufacturing companies.

The moving 12-month sum grew by a total of EUR 12.9 billion from a year ago, energy companies accounting for EUR 5.3 billion and manufacturing companies for EUR 5.1 billion.

At the end August, the stock of loans granted by banks operating in Finland to non-financial corporations 2 amounted to EUR 64.5 billion.

The corporate loan stock grew by EUR 1.8 billion in August 2022. Growth from a year ago amounted to EUR 7.2 bn, and the year-on-year growth rate was 13.2%.

At the same time, non-performing loans as a share of the loan stock decreased. In August 2022, non-performing loans amounted to 1.6% of the loan stock, in contrast to 2.4% a year earlier.