The volume of household deposits increased by €1.4 billion year-on-year, reaching €13.1 billion in December. Meanwhile, the volume of term deposits grew by 13.4 percent over the same period.

According to Eesti Pank (Bank of Estonia) economist Gaili Grüning, the strong growth in deposits in December may have been due to wages and bonuses, typically scheduled for the start of the year, being paid out at the end of the previous year to avoid the rising income tax.

In total, households added more than €400 million in deposits during December. A larger single-month increase in deposits has only occurred once before, in September 2021, when payouts from the second pension pillar were made.

The total volume of bank deposits stood at €32 billion in December, which is €2.5 billion more than a year earlier. Compared to November, the volume of deposits grew by €1.2 billion.

Of the deposits, €7.6 billion consisted of term deposits by resident households and businesses, marking an annual growth of 11 percent.

The average interest rate on term deposits was 3.04 percent in December, down from 3.21 percent in November and 4.26 percent in December 2023.

The volume of deposits from non-residents increased by €626 million year-on-year, accounting for 15 percent of the total deposit balance.

The volume of housing loans reached €192 million in December, €1 million more than the previous month and €41 million more than in December 2023. The average interest rate on new secured housing loans was 4.06 percent in December, 0.18 percentage points lower than in November and 1.43 percentage points lower than at the same time a year earlier.

Record number of leases toward year's end

The volume of car leases grew by €19 million year-on-year in December, reaching €53 million.

According to Gaili Grüning, an unusually high number of leasing contracts were signed at banks during the final months of the year.

"New taxes gave a significant boost to the vehicle market before the New Year. In the last quarter of the year, households and businesses signed leasing contracts totaling nearly €300 million. This is almost twice as much as is typical for a single quarter," Grüning noted.

Grüning added that all major leasing companies operating in Estonia are bank-owned, and after a period of slower growth in recent years, the growth of the leasing portfolio has accelerated to a pace similar to the long-term average, at 9 percent.

The average interest rate on car leases was 4.47 percent in December, down by 0.21 percentage points compared to the previous month and by 1 percentage point year-on-year.

The volume of housing loans overdue by more than 60 days accounted for 0.2 percent of the total housing loan portfolio, amounting to €18 million.

Corporate leases and loans also spiked in December

The volume of long-term loans and leases issued to businesses in December reached €626 million, an increase of €294 million compared to the same time last year and €263 million more than in November.

Compared to November, the volume of long-term loans and leases grew across all sectors, with the largest increases seen in the real estate and construction sectors, as well as in infrastructure.

The volume of loans overdue by more than 60 days rose from €24 million in December 2023 to €45 million in December 2024, representing a year-on-year increase of €21 million. Month-on-month, the figure rose by €1 million.

The volume of business deposits decreased from €10.2 billion in 2023 to €10.1 billion in 2024. However, the volume of term deposits was slightly higher than the previous year. In December 2023, term deposits stood at €2.8 billion, while at the end of 2024, they reached €3 billion.

The average interest rate on business term deposits was 3.02 percent in December, down from 3.15 percent in November and 4.16 percent in December 2023.

In December, businesses took out long-term loans at an average interest rate of 5.33 percent. This was lower than the 6.84 percent rate recorded a year earlier and the 5.6 percent rate in November.

Leases issued to businesses in December had an average interest rate of 4.74 percent, which was 0.06 percentage points lower than in November. In December 2023, the average rate for leases was 6.05 percent.

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