Loans up 3% in May. Deposits at record levels: rising to 1,890 billion
For households, this marks the seventeenth consecutive month of growth, whilst for businesses it marks the eleventh consecutive month of growth in lending
Key points
The growth in lending to households and businesses continues unabated. In May 2026, the total value of loans to these sectors rose by 3 per cent year-on-year, accelerating from the previous month’s increase (+2.9 per cent), continuing the upward trend in lending that began in March 2025. For households, this marks the seventeenth consecutive month of growth, whilst for businesses it is the eleventh consecutive month of growth in lending. In April 2026, loans to households rose by 2.6 per cent, whilst those to businesses rose by 3.1 per cent. This is according to the ABI’s monthly bulletin for May.
Rates remain stable ahead of the June adjustment. Mortgages at 3.49%
Also in May, the average interest rate on total loans stood at 4.04% (unchanged from the previous month). The average interest rate on new business loans fell to 3.51% (3.56% in the previous month; 5.45% in December 2023). The average rate on new loans for house purchases stood at 3.49% (up 2 cents on the previous month; 4.42% in December 2023)
Deposits hit a record high of 1,890 billion
Indirect deposits – that is, investments in securities held with banks – rose by 100.4 billion between April 2025 and April 2026 (39.5 billion from households, 15.9 billion from businesses, and the remainder from other sectors, including financial institutions, insurance companies and the public sector). Total direct deposits (deposits from resident customers and bonds) in May were up by 2.6 per cent year-on-year, continuing the positive trend recorded since the start of 2024 (+3.1 per cent in the previous month). Deposits, in all forms, grew by 2.3% year-on-year (+2.9% the previous month), reaching a record high of 1,890 billion. Medium- and long-term funding, via bonds, rose by 5% in May compared with a year earlier (+4.2% in the previous month). The interest rate on new fixed-term deposits (i.e. certificates of deposit and term deposits) was 2.22%, higher than the previous month (2.19%) and the euro area average, which stood at 1.97% in April. The rate on current accounts in May was 0.28% (unchanged from April 2026 and higher than the 0.02% recorded in June).
Net non-performing loans at an all-time low: 25.9 billion
In April 2026, net non-performing loans stood at €25.9 billion, down from €27.7 billion in December 2025 (€31.3 billion in December 2024). Compared with their peak of €196.3 billion reached in 2015, they had fallen by over €170 billion. Net NPLs accounted for 1.24% of total loans.
