Eurozone credit conditions GTM –UK | 21 Credit demand and eurozone GDP growth Bank loans to households and non-financial corporations Net % of banks reporting positive loan demand (LHS); % GDP growth (RHS) EUR billions, net lending flow, three-month moving average 150 6 Stronger loan demand y 100 4 50 2 Global econom0 0 Corporate lending rates to smaller companies -50 -2 % interest, non-financial corporations* -100 -4 Weaker loan demand Italy -150 -6 Germany Consumer credit (LHS) Overall corporate (LHS) Spain Housing loans (LHS) Eurozone GDP growth France -200 y/y (RHS) -8 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 Source: (Left) ECB, Eurostat, FactSet, J.P. Morgan Asset Management. (Top and bottom right) ECB, FactSet, J.P. Morgan Asset Management. *Interest on new business lending up to €1 million, on a 1-5 year maturity. Guide to the Markets - UK. Data as of 31 December 2016. 21