According to HN Daily, citing Pavel Kuhn from Ceska Sporitelna, the bank expects new mortgage loans sales to increase 35-40% (that is CZK 135-140bn). Ceska Sporitelna has reported new mortgage sales of CZK 3bn in January, (+ 88% y/y). The sharp increase is being attributed to uncertainly about VAT, expectations for a rise in interest rates, and the increase in average wages in the CR.
Our view: Last year, the overall mortgage market grew 32.7% y/y to CZK 374.3bn. We do not expect the news to have any significant impact on the stock price today but we view the news as supportive for sentiment towards Czech banking sector.