According to Polish daily Puls Biznesu, citing preliminary data of Polish Banks Association, Bank (137 PLN, -0,58%) has outperformed (31,64 PLN, -1,13%) in sales of mortgage loans for a second month in a row in April. Both banks improved monthly sales with Bank up 8.6% m/m and Bank up 4.2% m/m. Other banks which improved sales include DB PBC up 1%, (262,6 PLN, -1,83%) up 30%, BGZ up 20%.
Results are mostly consistent with bank’s strategies announced at the beginning of the year, with Bank will to lend, focusing on margins not volumes, and Getin (34,15 USD, 1,19%) Bank withdrawing from being among leaders in new lending. According to latest data from AMRON and banking association ZBP, the value of new mortgage loans granted in Poland reached PLN 10.2bn in 1Q12, down 5.5% q/q and 16.7% y/y. PLNdenominated loans accounted for 85% of loans issued in the period. We continue to expect a contraction of new mortgage sales by some 15% y/y in 2012. We expect banks with strong balance sheet and stable capital
position to win market share this year. We expect the news to have a neutral trading impact.