24th August 2016

July 2016 figures for the high street banks

Dr Rebecca Harding, BBA Chief Economist, said:

“This month’s BBA High Street Banking statistics are the first set of borrowing figures gathered since the EU referendum. The data does not currently suggest borrowing patterns have been significantly affected by the Brexit vote, but it is still early days. Many borrowing decisions will also have been taken before the referendum vote.”

“We are also clearly still a nation of shoppers and the Brexit vote has done nothing to change the fact that we use credit cards for short-term purchases. Strong retail sales figures appear closely associated with strong consumer credit growth.”

“Businesses also appear to be borrowing as usual: the upward trend that characterised the first few months of this year is continuing. June’s data looks like a blip, probably caused by pre-Brexit nervousness. But it is too early to tell how the data over the next few months will reflect the result of the decision to leave the EU.”

Annual borrowing growth rates

Household borrowing

  • Gross mortgage borrowing of £12.6bn in the month was 6% higher than in July 2015.
  • Net mortgage borrowing is 3% higher than a year ago.
  • Consumer credit continues to show annual growth of over 6% reflecting strong retail sales and in the case of personal loans and overdrafts favourable interest rates.
Number of approvals

Mortgage approvals

  • House purchase approval numbers are some 19% lower than in July 2015, though in the first seven months of 2016 they are some 2% higher than in the same period of 2015.
  • Remortgaging approvals were 6% higher than in July 2015 and in the first seven months of 2016 were 21% higher than in the equiivalent period of 2015.
  • Other advances were 19% higher than a year ago.
Business borrowing annual growth rates

Borrowing by non-financial companies

  • Borrowing by non-financial companies increased by £2.3bn in July after a small fall in June.
  • Net capital market issues by non-financial companies increased by £0.3bn in July however in the year to July 2016, a total of £19.0bn (net) has been raised. This alternative finance compares with an increase in bank borrowing of £4.5bn (net) over the same period.
Trends in net deposits


  • Personal deposits have been growing more strongly in recent months and annual growth has risen to 5%.
  • Non-financial companies deposits increased by an average of around £2-3bn a month in 2015 but have fallen back in 2016, taking their annual growth rate down from around 10% in 2015 to about 2.5% now.