According to HN daily, Czech mortgage market is booming. First estimates shows increase by several tens of percent, however not all the banks has released the data yet. The average mortgage is CZK 1.5m. Until last year the amount of mortgages in Czech Republic reached CZK 226bn and this year could increase by another CZK 90bn. Ceska sporitelna provided almost 11,000 mortgages for CZK 16bn in 1H06. KB also confirms rapid increase in mortgage loans, however no specific data for 1H06 has been released yet.
Our view:
We do not expect the news to have any significant impact on the stock price today.