Statistical news focuses on the latest figures and trends in Danmarks Nationalbank’s statistics. Statistical news is targeted at people who want quick insight into current financial data.
Corporate clients’ interest payments remain at a high level
The accrued interest on corporate clients’ bank and mortgage debt was Kr. 6.1 billion in October. This is a significant increase from Kr. 2.3 billion in June 2022, when interest rate hikes accelerated as the European Central Bank and Danmarks Nationalbank raised monetary policy rates. Interest rates have fallen slightly in recent months, leading to the accrued interest on business customers’ bank and mortgage debt in October being Kr. 0.3 billion less than when it last peaked in May 2024. The development in interest payments is primarily due to the average interest rate on Danish business customers’ loans, which was 3.9 pct. in October, having risen sharply since mid-2022. The size of the lending has only contributed to the rising interest payments to a lesser extent. Corporate clients’ loans have thus increased by approximately 6 pct. since June 2022.
Corporate clients’ interest payments have more than doubled since mid-2022
Note:
The figure shows the monthly accrued interest as well as the effective interest rate on Danish non-financial and personally-owned companies’ outstanding bank and mortgage loans. The accrued interest and interest rates in both the figure and text include both interest on bank loans as well as interest including contributions on mortgage loans.
Corporate clients’ loan interest rates have increased by 0.5 percentage points more than those of private customers since mid-2022. Part of the explanation is that corporate clients generally have a shorter interest rate fixation period on their loans compared to private customers. Therefore, corporate clients experience interest rate changes earlier and on a larger portion of their loans than private customers.