In August 2024, compared to August 2023, banks and credit cooperative organizations (SKOKs) granted more loans in the three main categories: cash (+13.9%), installment (+12.4%), and mortgage (+10.3%) and issued fewer credit cards (-2.9%). In terms of value, they granted a higher value of all credit products: cash loans (+27.8%), mortgages (+21.2%), credit cards (+11.6%), and installment loans (+4.5%).
In the first eight months of this year, in numeric terms, banks and SKOKs granted more mortgage loans (+80.2%), installment loans (+62.7%), cash loans (11.5%), and issued more credit cards (+2.4%). In terms of value, within this period, the banks and SKOKs facilitated higher value mortgages (+108.5%), cash loans (+24.8%), installment loans (+23,7%), and credit card limits (+14.8%).
In August of this year, the main types of loans –mortgage, installment, and cash loans– recorded an increase in sales in both numbers and value.
Installment Loans Continue Positive Sales Dynamics
In August of this year, installment loans granted increased by 12.4% compared to the previous year and by (+4.5%) compared to July 2024. The value also increased by 4.5% year over year and by 3.4% compared to the previous month.
“Analyzing the data on installment loans, there is a larger increase in the numerical perspective than in value. This is confirmed by the accumulating results since the beginning of the year, where the number of installment loans granted has increased by 62.7%, and their value by 23.7% compared to the same period in 2023,” said Dr. Waldemar Rogowski, the chief analyst of the BIK Group.
Continuation of Activity Growth in Cash Loans
The number of cash loans granted increased by 13.9% compared to August 2023, and their value achieved a dynamic of 27.8% year over year. The average value of an installment loan in August 2024 was 2,002 PLN, 7.1% lower than in August the previous year. Meanwhile, the average value of a cash loan amounted to 24,159 PLN – an increase of 12.2% compared to July of the previous year.
More Mortgage Loans
In August 2024, banks granted (+10.3%) more mortgage loans compared to August 2023, but in relation to July 2024, their number decreased by 12.2%.
“Despite the lack of a support program for borrowers, interest in mortgage loans does not diminish. From the beginning of the year, the number of mortgage loans granted increased by 80.2%, and their value by an impressive 108.5% compared to the same period in 2023,” added the chief analyst of the BIK Group.
Still a Safe Level of Credit Risk
August readings of all four credit quality indices have significantly improved year on year. All four Quality Indices indicate a still safe level of risk in the credit portfolio granted to households.
“Undoubtedly, better-quality loan repayment goes hand in hand with an increase in borrowers’ wages and a stabilization of the interest rate level on repaid loans. However, constant observation of the values of individual Quality Indices is necessary to identify signals about potential deterioration in the quality of the loan portfolio in advance,” explains Prof. Rogowski.
Source: https://ceo.com.pl/wzrost-liczby-i-wartosci-kredytow-udzielonych-w-sierpniu-2024-r-15284
