Overview of Loan Production Growth
The banking sector experienced a notable acceleration in loan production, achieving an 8% increase in 2025. This growth is largely attributed to a significant 10.9% rise in lending to the public sector, alongside a more modest 3.9% increase in loans to the private sector.
Public Sector Lending Surge
Loans extended to local governments saw an extraordinary increase of 56.8%, a substantial rise from the previous figure of 0.6%. This surge is primarily linked to funding for seawater desalination projects and the expansion of high-speed train lines.
Private Sector Loan Developments
In the private sector, loans to private companies rose by 3% compared to the earlier increase of 2.3%. Additionally, lending to households grew by 3.6%, up from 3.4%.
Sectoral Breakdown of Bank Credit
The annual evolution of bank credit in the non-financial sector reflects growth across nearly all categories, with the exception of cash facilities, which saw a more pronounced decline of 4.9%. Noteworthy increases included a 20.4% rise in equipment loans, up from 16.2%, a 3.4% increase in real estate loans, and a 5% rise in consumer credit, compared to 4.7% previously.
Trends in Non-Performing Loans
The annual growth rate of non-performing loans (NPLs) slowed to 3.1%, down from 5.8% in November. The NPL ratio relative to total credit decreased to 8%, compared to 8.7% previously.
