Although the loan portfolio to the industrial sector is the largest of all those destined for productive activities, it has managed to reduce its volume by 89% only during the first half of 2021, which represents more than 2,780 million euros.
The industrial sector has managed to reduce its outstanding credit balance by more than 2,780 million euros during the first six months of the year. This is clear from the data contained in the report “Evolution of credit to companies in Spain 2021”, prepared in accordance with the data provided by the Bank of Spain and published by AIS Group, consulting firm specialized in the application of Artificial Intelligence and Business Intelligence to credit risk management.
This reduction in the volume of credit to industry represents 89% of the global portfolio for productive activities, which, according to the report, is quantified at more than 3,100 million euros.
However, the portfolio of credits to the industry it is still the largest that is allocated to productive activities, and is estimated at 108,000 million euros. In total, this represents almost a fifth of all the outstanding credits that are destined to the business fabric.
These data show that the economic urgency of the companies in the sector decreased during the first semester of 2021 after growth in rates of 6% and 7% during 2020 as a result of the impact of the coronavirus and the emergencies that they had to attend to. . After these needs, 2021 began with a return to the bearish path.
Improving credit management
The data from the AIS Group report indicate that, during the first six months of last year, the stock of loans to companies in the industrial sector decreased by 2.5% compared to December 2020.
Despite this reduction in the volume of loans, the delinquency rate has remained stable since the outbreak of the pandemic, and remains at 4.8%, which is just 2 tenths below the global average of credit granted to Business.
Another of the decreases that have been experienced in 2021 in the bad credits, that is, those in which they perceive signs that the borrower will not be able to return it, or more than 90 days have passed without the borrower paying the principal or interest. The report points out that these credits have also fallen in the first half of 2021 to below 5,150 million euros, that is, about 146 million euros less, that is, a reduction of 3%, compared to the end of 2020 .
However, this decrease in non-performing loans is even greater if the period from June 2020 to June 2021 is taken as a reference, which shows a contraction of 307 million euros in these loans. This highlights the downward trend of industrial companies that have been reducing these loans since 2014, when they reached their maximum level with 15.2 billion euros.
Given these figures, from AIS Group they point out that, given the concern of banks and finance companies to control credit risk and not increase delinquencies, the use of technology to optimize the granting of loans, their monitoring and recovery is growing. This is highlighted by José Manuel Aguirre, director of institutional relations at AIS, for whom, “the use of techniques such as machine learning is increasingly frequent to develop evaluation models for loan applications, whether for operations with individuals, freelancers or companies. “.
Likewise, we are seeing more and more applications of technology in monitoring systems and tools for the recovery of bad debts. The prediction possibilities that Artificial Intelligence allows has increasingly become a great asset to carry out analyzes that optimize decision-making.
