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UNION bank survey Q3 2023

We have interviewed the largest banks in Norway. See the summary below and our assessment of the findings. 

Published 20.09.2023 20:52

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Last changed 16.10.2023 15:38

Bank margins are slightly increasing in the third quarter, continuing the trend from the second quarter. The average bank margin for the bulk of new loans is 239 basis points. This is four basis points higher than in the second quarter, and the last time we had such a high bank margin for the bulk of loans was in the second quarter of 2013. 

Bank margin office Oslo (bps)

050100150200250300Q3 2010Q1 2011Q3 2011Q1 2012Q3 2012Q1 2013Q3 2013Q1 2014Q3 2014Q1 2015Q3 2015Q1 2016Q3 2016Q1 2017Q3 2017Q1 2018Q3 2018Q1 2019Q3 2019Q1 2020Q3 2020Q1 2021Q3 2021Q1 2022Q3 2022Q1 2023Q3 2023Five years + 65% LTV*Three years + 50% LTVThe bulk of new loans
Source: UNION *Not relevant at the moment.

Since the last survey, the 5-year swap rate has increased by 0.6 percent. If one locks in the interest rate for five years, the majority of new loans have a financing cost of 6.7 percent. This is the highest level we have measured since we started the bank survey. A typical loan with a 3-year maturity and a 50 percent loan-to-value ratio has a total borrower interest rate of 6.6 percent.

Total loan financing rate for new loans*

0%1%2%3%4%5%6%7%Q3 2010Q1 2011Q3 2011Q1 2012Q3 2012Q1 2013Q3 2013Q1 2014Q3 2014Q1 2015Q3 2015Q1 2016Q3 2016Q1 2017Q3 2017Q1 2018Q3 2018Q1 2019Q3 2019Q1 2020Q3 2020Q1 2021Q3 2021Q1 2022Q3 2022Q1 2023Q3 2023Five-year swapBank margin (the bulk of new loans)Three years + 50% LTV
Source: UNION and DNB Markets *Note that we have replaced the old «standard case» with the margin for «the bulk of new loans» in this graph. The reason is that no banks are willing to provide a 65 percent loan-to-value anymore.
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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.

UNION Gruppen
Bolette Brygge 1 Postbox 1715 Vika | 0121 Oslo | Norway
+47 23 11 69 00 | post@union.no | www.union.no

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