Increase in the number and value of loans in May 2024
“In May 2024, compared to May 2023, in numerical terms, banks and credit unions granted more three main types of loan products: installment loans by (+58.6%), housing loans (+36.1%). .) and cash (+6.2 percent). However, they issued fewer credit cards (-0.1 percent),” the Credit Information Bureau (BIK) reported.
The presented data show that in terms of value, banks and credit unions awarded higher values in all loan products: housing (+54.1%), cash (+20.3%), installments (+15.2%). ) and credit card limits (+11.0%).
In the period from January to May this year, in numerical terms, banks and credit unions granted 122 percent more housing loans, 87.4 percent more installment loans, and 12.5 percent more cash loans. The number of credit cards issued increased by 0.9 percent. In value terms, banks and credit unions granted 165.2 percent more housing loans, 31 percent more installment loans, 25 percent more cash loans, and 10.8 percent more credit card limits.
Increased popularity of installment and cash loans
Experts drew attention to the continuing upward trend in the sale of bank loans. “Instalment loans continue to have a positive dynamics in sales value (+15.2%), especially up to PLN 1,000. In numerical terms, the increase was even more spectacular, amounting to (+58.6%). This high increase is mainly due to low-value loans installment loans, resulting from the transformation of unpaid liabilities from the interest-free period under deferred purchases (BNPL) into installment loans through the purchase of these receivables by banks,” the information said.
It was added that activity in cash loans was also positive for the banking sector. Their number increased in May this year by 6.2 percent, and the value of lending increased by 20.3 percent. y/y.
Constant interest in housing loans
BIK experts pointed out that housing loans are still more popular than a year ago, despite the lack of a new borrower support program. They also recalled that the previous program was responsible for approximately 60%. lending in the second half of 2023
Chief analyst of the BIK Group, Ph.D. Waldemar Rogowski emphasized that in May this year banks granted 15 thousand housing loans worth PLN 6.21 billion. In his opinion, the still high sales compared to May last year are influenced by higher creditworthiness. “It was mainly due to the real increase in wages (approx. 10%) and the stabilization of interest rates at a level of approximately 1.0 pp lower than last year. This, in turn, directly translates into a higher value of the housing loan granted. In May this year “its average amount was PLN 414.4 thousand and was 13.2 percent higher than last year,” Rogowski said.
Decrease in the number and value of housing loans since January
He added that in May this year, compared to the historically record January this year, the value of mortgages granted decreased by approximately PLN 4.1 billion. Also in May compared to April this year. both the number (by 1.6 thousand loans) and the value (by PLN 657 million) of housing loans granted decreased. “Since the beginning of the year, we have seen a decline in lending activity m/m. Its still positive y/y dynamics are mainly due to the low base from May last year and the increase in creditworthiness enabling taking out loans for higher amounts,” the analyst pointed out.
In his opinion, the market is waiting “for the fate of the new support program”; in its absence, a negative dynamics of lending on an annual basis should be expected in the second half of the year.
Improving the quality of the housing loan portfolio
BIK reported that the monthly reading of the Quality Index of the housing loan portfolio in May 2024 amounted to 1.06%. In the last 12 months (from May 2023 to May 2024), the quality of the portfolio improved, as evidenced by the decrease in the Index by (-0.26 pp).
The BIK Group includes the Credit Information Bureau, the InfoMonitor Economic Information Bureau and Digital Fingerprints. (PAP)
