Origination data in August was for the most part similar to that of data from July. Total originations were down slightly, but still well above the €10,000,000 threshold. Spanish loans decreased, but still remained at high levels compared to previous months, and Finnish and Estonian originations maintained their trends.
Country Breakdown
Total originations were down from record highs by 5.4% to €14,582,025. Spanish loans, which jumped a massive 286% higher in July, were predictably lower, down to €3,075,350, a drop of 26.1%. Loans out of Estonia actually increased slightly on the month, up by 7.5% to €5,471,065.
F rated loans out of Spain continued their torrid rise, garnering €2,741,385 of originations, equating to 18.8% of all originations on the month. However, D rated loan out of Spain slid significantly, down to only 1.6% of all originations, a total of €236,895. Estonian C and D rated loans saw their total shares go back above the 10% mark, with C rated loans garnering 10.7% of originations, and D rated loans coming in at 11.3%.
Loan Amounts
There wasn’t much of a change in average loan amounts across the three origination countries. Spanish and Finnish average loan amounts crept slightly higher, while the average loan in Estonia dropped by 1.2% to €2,108.
Loan Duration
The average loan duration in Spain shot up to 57 months from 52 months in July, surpassing Finland as the country with the longest loan durations. Meanwhile, Estonian loans averaged 49 months for the third consecutive month.
There were nearly zero short term loans in Spain, leading to the significant rise in its average loan duration. Over 99% of Spanish loans were either 36, 48, or 60 months in duration.
Average Age
The average age of borrowers was unchanged in Spain (42 years) and Finland (48 years). Estonian borrowers were on average a year younger this month when compared to last month, with an average age of 39 years old.
Income
As loan durations increased in Spain, so did the average income of its borrowers. Spanish borrowers averaged €1,845 in monthly income during August, up by 18.6% from July. Estonian borrowers made slightly less than last month (1.6% lower) and Finnish borrowers made slightly more (2.4% higher).
Education
A higher percentage of Spanish borrowers than in July, 41.9%, have obtained a university degree. Estonian borrower skewed slightly toward lower education levels, with 17.0% of borrowers from the country only having a junior high school education. Still, these figures weren’t much different than the previous month to indicate any major changes.
Employment
Employment levels in In August were in-line with the previous month. 39.0% of borrowers were employed for more than 5 years and 27.6% of borrowers have been employed up to 5 years.
Home Ownership Status
Estonian and Finnish borrowers had similar home ownership statuses as July. In Spain, borrowers shifted away from home ownership (19.6% of Spanish borrowers) and more toward living with parents (27.0% of Spanish borrowers).
Verification Status
There was an uptick in Estonian borrowers being verified, coming in at 46.6%. The same trend occurred for Finnish borrowers, with a 69.8% verification rate compared to 65.4% last month. Once again, almost all Spanish borrowers (99.5%) were verified in August.
Conclusion
The past two months have seen great gains for Spanish loans. While the total amount of Spanish loans decreased in August, the average loan amount and average income of borrowers both increased, showing signs of strength out of the country. Meanwhile, originations out of Finland and Estonia have displayed solid trends over the past several months, pointing to consistency in origination data.
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