First-quarter data reveals a clear trend in the banking sector: consumer credit has risen much more strongly than real estate financing. Entities such as Banc Sabadell have seen their outstanding mortgage credit increase by 4%, while active consumer credit grew by 14% compared to the end of 2025. However, new mortgage lending decreased by 26% year-on-year until March.
This dynamic is replicated in other major banks. CaixaBank recorded a 12.4% growth in its consumer portfolio, compared to 6.7% in home purchase loans. Similarly, BBVA experienced a mortgage increase of 1.5%, while its consumer credit grew by 4.2%.
“"It is normal for there to be more demand for consumer credit, because employment is growing; while the state of the housing market limits access to mortgages."
Consumer financing is characterized by more demanding installments, with an average interest rate of around 7%, according to the Bank of Spain's credit study. In contrast, home purchase loans were granted with an average interest rate of 2.88% between January and March, in line with the rising Euribor. This difference in profitability, along with a growing labor market, makes consumer credit more attractive to entities.
The healthy state of banks' credit accounts, with an aggregate non-performing loan ratio for the six Ibex entities plummeting to 2.1%, allows entities to take on more risk. This situation opens the door to less secure but more profitable market segments. Analysts suggest that banks could leverage this flexibility to offer products with better interest rates, although the transition will be gradual.
