Competition continues to put pressure on bank margins. In the second quarter, the margin for a standard loan—with 50 percent loan-to-value and a 3-year maturity—fell by 6 basis points to 179 basis points. The margin on the majority of new loans is 181 basis points, which is nearly 60 basis points lower than the peak in Q4 2023.

Swap rates are at roughly the same level as when the survey was conducted in the first quarter. As a result, the all-in lending rate has declined slightly. In the second quarter, the all-in rate on the majority of new loans is around 5.9 percent, approximately 7 basis points lower than in the first quarter.

Do you want to know more about the findings from the banking survey? Please contact Robert Nystad at nystad@union.no or 906 19 758.