Consumer credit hits record €3.2Bn

Consumer loans from banks and credit agencies soared to a new 10-year record of €3.2Bn for the first five months of this year, despite high interest rates.

It was the highest value since 2013 when the Bank of Portugal began publishing statistics on consumer credit and represents a 1% increase in relation to the same period last year when at that time there were constraints because of the pandemic, and when companies and economic agencies were adjusting to fallout from the war in the Ukraine.
10 years ago, the total of amount of credit lent out to consumers in the first five months of the year was €1.5Bn – half of the loans issued so far this year.
Car loans and credit card borrowing saw the biggest increase at 7% in accumulative terms according to data released on Monday from the central bank.
In terms of car loans, borrowing was €1.16Bn with new cars representing €248.2 million (+18%) and second hand cars at €888.2 million. (+9%)
Credit on credit cards stood at €550 million between January and May, 2023.
However, personal credit which accounts for almost half of all consumer loans fell by 5% to €1.47Bn in the same period with other non-specific loans falling 6% to €1.42Bn.
Personal loans for education, health, renewable energy and for other ends increased 4% but only represented €57 million for the first five months of the year.