Spanish banks have seen the value of their property portfolio decrease in June for the first time in over 10 months of consecutive growth. According to new data issued by the Bank of Spain, local lenders owned real estate worth some EUR 20.3 bn in June, representing a decrease of 1.5%, or EUR 311 mln, compared to May 2009. However, the figure is still 8% higher than the same period a year ago.
Spanish banks have seen the value of their property portfolio decrease in June for the first time in over 10 months of consecutive growth. According to new data issued by the Bank of Spain, local lenders owned real estate worth some EUR 20.3 bn in June, representing a decrease of 1.5%, or EUR 311 mln, compared to May 2009. However, the figure is still 8% higher than the same period a year ago.
The financial crisis in Spain resulted in real estate developers and property companies having to transfer property assets as a repayment for loans issued by local lenders and cajas (regional savings banks). These banks in particular currently own around 75% of the total assets.
The total portfolio owned by the banks reached the EUR 20 bn mark in February this year and has continued to grow since, albeit at a slower pace. The Bank of Spain estimates that the increase amounted to around EUR 85 mln in April and EUR 38 mln in May. The new figure has been widely interpreted by market experts as a sign that the Spanish property industry is beginning to stabilise.
