By the middle of next year, the proportion of non-performing corporate loans may even double

By: Trademagazin Date: 2022. 11. 18. 10:03

The drastic deterioration of economic conditions will be reflected in the drastic deterioration of corporate loans within a few quarters. According to the estimate of Moore Hungary’s financial consulting business, the proportion of non-performing corporate loans may rise to over 8 percent by the middle of next year from the 4.1 percent reported in the first half of this year. Individual banks can do a lot for the better development of their own loan portfolio by restructuring their loans in time.

More and more companies are unable to pay

The data currently available in the statistics of the MNB do not yet show a significant deterioration in the credit quality of domestic companies: the ratio of non-performing loans (NPL) rose from 3.9 percent at the end of 2021 to 4.1 percent in the second quarter of 2022. Within this, the proportion of loans overdue for more than 90 days increased from 29 to 39 percent. In any case, the ratio of bad loans has already started to increase from last year’s low point, which is also indicated by the fact that the volume of restructured corporate loans rose by 8.7 percent in 3 months to over HUF 1,300 billion in the second quarter of this year.