Financial corporations, balance sheet, February 2011

Loans secured on dwellings from banks and mortgage companies to households amounted to NOK 1 590 billion at the end of February 2011. This is an increase of NOK 100 billion, or 6.7 per cent, compared to February last year. The 12-month growth has been relatively stable since January 2009, varying between 6.3 and 7.6 per cent.

Decreasing growth in mortgage companies

Loans secured on dwellings from mortgage companies to Norwegian households amounted to NOK 740 billion at the end of February 2011. This is an increase of NOK 122 billion, or 19.6 per cent, compared to February last year. At the end of January 2011 the equivalent growth was 37.1 per cent. Comparing the four last years, the 12-month growth in February 2011 was the lowest recorded. The highest 12-month growth in this period was 220 per cent.

Reduced decrease in banks

Loans secured on dwellings from banks to Norwegian households amounted to NOK 850 billion¹ at the end of February this year. This is a decrease of NOK 21 billion, or 2.4 per cent, compared to February last year. Loans secured on dwellings from banks have decreased since September 2008, but the decrease has never been as low as at end-February 2011.

The decreasing growth in loans from mortgage companies and the reduced decrease in loans from banks may be explained by portfolio movements. The movements of loans from banks to mortgage companies may have diminished because more of the loan handling goes directly through the bank-owned mortgage companies that specialise in housing loans.

Still highest growth in credit lines

Loans secured on dwellings can be divided into two loan types; repayment loans and credit lines. Credit lines secured on dwellings to households, which amounted to NOK 416 billion at end-February 2011, have increased by NOK 51 billion, or almost 14 per cent, since February last year. With the exception of October 2010, when the 12-month growth was close to 19 per cent, the 12-month growth has been stable between 14 and 15 per cent since November 2009. Repayment loans secured on dwellings to households amounted to NOK 1 174 billion at the end of February 2011 and the 12-month growth was only 4.4 per cent; a marginal increase from the previous month. The 12-month growth in repayment loans secured on dwellings has also been relatively stable the last couple of years, but has been significantly lower than the growth in credit lines secured on dwellings.

Growth in banks’ credit lines for the first time since May 2009

Both banks and mortgage companies’ credit lines secured on dwellings increased from February last year to February this year. Credit lines secured on dwellings from banks to households increased by NOK 13.5 billion, or 7.8 per cent, in this period. This is the first time since May 2009 that the 12-month growth in banks’ credit lines secured on dwellings to households has been positive. Credit lines secured on dwellings from mortgage companies to households increased by NOK 37 billion, or 19.4 per cent, compared to February last year. This is on the other hand the lowest 12-month growth ever recorded.

Repayment loans secured on dwellings from mortgage companies to households increased by NOK 84.5 billion, or 19.8 per cent, from February last year to February this year. With regard to credit lines secured on dwellings, this is the lowest 12-month growth measured in the last four years. Repayment loans secured on dwellings from banks to households decreased by NOK 35 billion, or 5 per cent, in the same period. This is the lowest decrease since August 2008.