Poland's number of housing loans in October falls by 27.5 pct y/y
The number of housing loans in Poland fell by 27.5 percent year on year in October, Polish credit information firm BIK's chief analyst Waldemar Rogowski wrote.
"We are observing an interesting situation on the housing loan market. In October 2024, banks granted 27.5 percent fewer mortgages compared to October 2023, but already recorded a slightly lower decrease of 23.8 percent in value terms, which is due to the higher growth of high-value housing loans," Rogowski wrote.
"The lack of a new support programme and the high base from October are causing declines in home loans both in terms of numbers and value," he added.
The chief analyst pointed out that in October, compared to the prior year period, banks and credit unions granted more cash loans and credit cards, while fewer instalment and housing loans.
According to him, in value terms, banks granted a higher value of three products: cash loans, credit cards and instalment loans.
Rogowski added that October's lending shows a continuation of the good market for retail loans (cash and credit cards), both in terms of numbers and value. Instalment lending got a breather, but only in numerical terms.
"This is linked to a large decline in the number of low-value loans granted (up to PLN 1,000)," he explained.
Rogowski added that year to date, Poland has already observed that the value of lending in the cash loan segment is growing more clearly than the number of loans.
In October customers took out loans for an amount 37.9 percent higher than a year earlier.
"This is related to high activity in the segment of loans for high amounts, i.e. for more than PLN 50,000," Rogowski assessed.
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