Figures from the Major British Banking Groups (MBBG), for May 2003, show that personal lending is st...
Figures from the Major British Banking Groups (MBBG), for May 2003, show that personal lending is still growing but the rise is slower than in recent months. Mortgage lending has risen by an underlying average of £5.1bn a month over the last six months but May's underlying rise was weaker, at £4.6bn. Structured personal loan demand was also lower than of late, rising by only £0.2bn. Despite a stronger rise of £0.5bn in credit card lending, the increase in total lending to individuals of £5.3bn was below the recent monthly average of £5.8bn.
David Dooks, director of BBA statistics, says: "Weaker mortgage growth and personal lending in May could be a sign of individuals' demand for structured borrowing slowing down, though by contrast, credit card borrowing was above its recent average. With no evidence of customers reducing their repayment levels in recent months, increased card borrowing is likely to reflect increased spending."
While the May figure is down on April the total net sterling lending, after allowing for a mortgage securitisation and the sale of a credit card book, is still above the recent monthly average. It increased by £10.5bn (+1.2%) to £910bn in May. This rise compares with the previous month's underlying rise of £13.2bn and the recent monthly average of +£9.5bn.
The MBBG comprises of major banking groups in he UK -– Abbey National, Alliance and Leicester, Barclays, Bradford and Bingley, HBOS, HSBC Bank, Lloyds TSB, Northern Rock and The Royal Bank Of Scotland.
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