Irish banks saw strong growth in personal loan activity in the second quarter from a year earlier as consumers borrowed to finance their holidays.
Data from Banking and Payments Federation of Ireland shows that the value of drawings on personal loans during the period April to June 2022 (which excludes mortgages) increased by 20.1% year-on-year to reach 414 million euros.
Two factors are behind this growth: in addition to an increase in borrowing for holidays, banks have extended more loans for home improvements.
On an annualized basis, €1,540 million was drawn in the twelve months ending June 2022, an increase of 4.7% compared to the 12 months ending March 2022.
Home improvement loans in the second quarter were 12.7% ahead of the same period in 2021, driven by household investment in renovation.
Automotive loans and auto financing were down 0.4% year-over-year in the quarter.
“Other” loans, which include vacation, education and wedding loans, were up 59.2% year-over-year in the second quarter.
For the first half of 2022, other loans exceed car loans by €8 million. For the same period in 2021, car loans exceeded other loans by €80 million.