Eurozone Banks: Loan-Deposit Tracker: May-26: Loan growth continues to accelerate

Research evidence excerpt

Eurozone Banks: Loan-Deposit Tracker: May-26: Loan growth continues to accelerate

Update

July 3, 2026 12:04 PM GMT

Morgan Stanley & Co. International plc+MEurozone Banks | Europe Franco Insausti, CFA

Equity Analyst

Loan-Deposit Tracker: May-26: Franco.Insausti@morganstanley.comMorgan Stanley Europe S.E., Madrid Branch+ +44 20 7677-3769

Alvaro Serrano

Equity AnalystLoan growth continues to Alvaro.Serrano@morganstanley.com +44 20 7425-6942

Morgan Stanley & Co. International plc+accelerate Giulia Aurora Miotto, CFA

May-26 data show private-sector loan growth accelerating to Giulia.Aurora.Miotto@morganstanley.com +44 20 7425-5344

Noemi Peruch

+2.9% YoY (vs 2.7% in Apr), led by corporates, with consumer Equity Analyst

production robust and mortgage originations showing signs of Noemi.Peruch@morganstanley.com +44 20 7677-3163

Gulnara Saitkulova

seasoning. Deposits, funding costs and customer spreads remain Equity Analyst

Gulnara.Saitkulova@morganstanley.com +44 20 7677-0313

stable. We remain positive on the sector. Ned Tidmarsh

Research Associate

Key Takeaways Ned.Tidmarsh@morganstanley.com +44 20 7425-0122

Banks

Private-sector loan growth accelerated to +2.9% YoY in May (+34bps MoM), led

Europe

by NFC loans up +3.5% YoY. Industry View Attractive

Corporate loan production is still running at +6% YoY; consumer production

Exhibit 1 : Loan growth was 2.9% YoY driven

remains robust at +7% YoY.

by corporate loan growth +3.5% YoY

Deposits grew +3.1% YoY; term/redeemable mix stayed around c.40%; back-book

Private Sector Loans (YoY)

deposit costs/pass-through stayed at 0.85%/c.42%. 9%

8% Latest 3m Prior 1m Prior

We believe rates and a higher savings rate are likely to keep earnings resilient but 7%

acknowledge that Middle East uncertainty could hold back investments. 6%

5%