According to PAP, PKO sold mortgage loans worth PLN 777.2m in November 2012. According to the bank PKO remained a leader in the new production of mortgage loans for a fourth consecutive month, with market share of 28.6%.
While the November level is visibly lower than the PLN 911m new production reported by the bank in October 2012, it is still above the average monthly levels from 1H12. New mortgage sales picked up to PLN 1.9bn in 3Q12, up from an average PLN 1.6bn in the first two quarters of 2012. This latest information should have been expected by the market given the increased demand for housing prompted by the expiry of the government’s ‘Rodzina na swoim’ subsidy program. We expect the news to have a neutral trading impact on PKO today.