Five Major Banks' Household Loans Rebound After 1 Year and 5 Months

677 trillion as of May... Up 143.1 billion from previous month
Impact of increased mortgage loans
Corporate loans also continue to rise

As mortgage loan interest rates declined, mortgage loans increased, leading to a rebound in household loans at the five major commercial banks for the first time in 1 year and 5 months.

According to the banking sector on the 1st, the outstanding balance of household loans at major commercial banks including KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup as of the end of May was 677.6122 trillion won, an increase of 143.1 billion won compared to the previous month (677.4691 trillion won). This is the first time in 1 year and 5 months since December 2021 that household loans at these banks have increased compared to the previous month.

This is the result of an increase in mortgage loans, which account for most household loans. The outstanding balance of mortgage loans at the five major commercial banks as of the end of May was 509.6762 trillion won, up 69.35 billion won from 508.9827 trillion won a month earlier. Mortgage loans, which had been continuously decreasing from February to April this year, turned to an increasing trend after 4 months due to the recent decline in mortgage loan interest rates at commercial banks.

However, personal credit loans decreased by 25.83 billion won compared to the previous month, standing at 109.6731 trillion won as of the end of last month (109.9314 trillion won).

Corporate loans also increased. Large corporate loans rose from 114.6743 trillion won at the end of April to 118.3492 trillion won at the end of May, and small and medium-sized enterprise loans jumped from 605.4036 trillion won to 608.6395 trillion won during the same period.

The balance of time deposits increased by 11.8088 trillion won to 817.5915 trillion won compared to the previous month. Accordingly, the deposit balance of these banks increased to 1,895.5696 trillion won from 1,878.8819 trillion won in the previous month.

[Image source=Yonhap News]

This content was produced with the assistance of AI translation services.