Nordic banks post highest loan-to-deposit ratios among European lenders in Q3


Nordic banks saw a year-over-year decline in their loan-to-deposit ratios in the third quarter, but remained the highest among major European lenders during the period, according to data from S&P Global Market Intelligence .

Swedish company Svenska Handelsbanken AB (publ) tops the table with a loan-to-deposit ratio – a key metric for assessing a bank’s liquidity – of 162.9% at the end of September, despite a steady decline of a year on year since 2018. Finland Nordea Bank Abp came in second with a ratio of 162.5%, up from 168.7% a year ago, followed by Danish bank Danske Bank A / S with 156.2%, down from 161.4%.

Swedish lender Skandinaviska Enskilda Banken AB (publ) posted a loan-to-income ratio of 104.1% at the end of September, down from 129.9% a year ago.

Monetary financial institutions, or MFIs, in the Nordic region have seen their total loans increase to 2.32 trillion euros in September compared to 2.10 trillion euros a year ago, according to ECB data. Total deposits also increased on an annual basis, to 1.40 trillion euros from 1.28 trillion euros, although it remained the lowest in Europe.

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French MFI continued to hold the highest levels of total loans, at 7.19 trillion, and deposits, 6.59 trillion, during the period, followed by Germany and the UK , respectively. The French Crédit Agricole SA was at the bottom of the ranking of European lenders by loan / deposit ratio, with 56.5% at the end of September.

Spanish MFI had the lowest level of total loans, 1.90 trillion, in the quarter, compared to 1.78 trillion euros a year ago. Their deposits increased year on year to 2.17 trillion euros from 2.07 trillion euros.

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