UKNF: 2020 value of non-performing Polish housing loans reached 2.5%

by   CIJ News iDesk III
2021-07-24   08:17

The value of non-performing / impaired loans amounted to PLN 11.8 billion and at the end of 2020 accounted for 2.5% of the total value of housing loans. At the end of 2019, the value of non-performing loans was lower - PLN 10.1 billion, which accounted for 2.3% of the portfolio value, the Polish Financial Supervision Authority reported in its report.

Credit quality deteriorates linearly with the aging of the portfolio, but for housing loans granted in 2008, there is a sharp increase in the share of non-performing / impaired loans. Loans granted in 2008, currently on banks' balance sheets, are characterized by a relatively low quality compared to other years, according to a report, information on the condition of the banking sector in 2020.

The gross carrying amount of the portfolio of housing loans for households at the end of 2020 was PLN 462.7 billion, and their number was 2.4 million. Compared to the end of 2019, both figures increased by 7% and 3%, respectively, the Office reported. PLN loans accounted for 74.2% of the gross book value of the housing loan portfolio, and 20.9% - loans in Swiss francs.

The increase in the share of CHF loans in the portfolio of housing loans after 2039 proves that these loans were granted for a longer term on average than loans in PLN, indicated in the report.

The average gross carrying amount of a Swiss franc loan was PLN 234.3 thousand at the end of 2020, and a PLN loan of PLN 185 thousand. A high share of loans with a gross carrying amount of over PLN 500 thousand was observed for Swiss franc loans. These loans accounted for 29.5% of the portfolio of all franc housing loans (11.7% in the case of loans in PLN), and the average gross carrying amount of a loan in this range was PLN 772.7 thousand (PLN 690.9 thousand for loans in PLN).

At the end of 2020, the number of loans converted from foreign currency to PLN amounted to 8.2 thousand. (7.5 thousand at the end of 2019) The gross carrying amount of these loans at the end of 2020 was PLN 2.9 billion (PLN 2.8 billion at the end of 2019). 75.7% of loans converted from foreign currency to PLN (share according to the gross carrying amount) are loans classified as impaired / impaired (as at the conversion date), was also reported.

In 2020, banks granted 202.4 thousand housing loans (221.5 thousand in 2019) with a total nominal value of PLN 59.9 billion (PLN 61.6 billion in 2019). The average value of the granted housing loan is PLN 295.8 thousand. PLN (PLN 278.2 thousand in 2019).

The total nominal value of the requested loans in 2020 was PLN 7.2 billion higher than in 2019, however, both the value of loans for which a positive decision was issued and the value of loans granted were lower in 2020 than in In all quarters of 2020, the percentage of loan applications that received a positive decision was lower than in 2019. This may indicate a more restrictive housing loan policy in 2020, according to the report.

The information comes from the non-report study on housing loans to households. 28 banks participated in it report by UKNF.

Source: UKNF and ISBnews