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.
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 over year to 2.17 trillion euros, from 2.07 trillion euros.