Albanian banks’ loans to individuals amount to 12 % of GDP as a result of Q3 performance

The loan portfolio for individuals increased ALL 2.1 billion in the third quarter of 2017.

According to the analysis of lending trends drafted by the Bank of Albania, the growth has accelerated to 6.8%, from 6.5% that it was in the second quarter.

Lending to individuals has now reached about 12% of Gross Domestic Product, amounting to a total value of about ALL 168 billion.

The growth in lending to households in the third quarter relies largely on lending for housing.

This portfolio marked an acceleration of growth rates to 4.5%, against 3.9% recorded in the second quarter.

According to banks operating in Albania, the improved performance of this portfolio comes from the increased demand of individuals to invest in the housing market as well as from the banks’ affordable offerings for this product.

Banks also state that a positive impact on the performance of this portfolio has also been provided by local government projects to subsidize the interest rates on housing loans for young couples.

Consumer credit also reported high growth rates at 12.4%, supported by further eased lending conditions.

Banks have eased their terms for this kind of loan since several years, and the share of consumer credit to total loans to households is on an upward trend since more than two years.

At the end of September, consumer credit accounted for approximately 30% of total loans to individuals, while a year earlier this figure was at 28.4%.

SCAN

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