According to PAP, citing Agnieszka Krawczyk retail banking director at PKO BP, new sales of mortgage loans is expected to reach PLN 1.7bn in 2Q12, according to preliminary data, flat from the previous quarter. She has also stated that loan demand has eased in comparison to 2011, however promotional campaign introduced in April has helped to attract clients.
Preliminary data shows LTV level of 69%, similar to 1Q12.
This preliminary data implies 39% y/y decline in the mortgage loan newproduction, however 2Q11 sales at PLN 2.8bn was above average of PLN 2.3bn for 2011. Lower mortgage production should be expected, we expect the news to have a neutral trading income.