The Credit Information Bureau (BIK) reported that in July this year all types of credit saw an increase in sales both in number and value.
In the report, BIK noted that installment loans continue to have positive sales dynamics. As reported, in July of this year they were granted by 28 percent more compared to July 2023, but by 2.4 percent less than in June 2024. Their value increased by 18.4 percent year-on-year and by 3.3 percent compared to the previous month of this year.
Loan boom. Poles are more willing to take out loans
Experts pointed out that in installment credit the increase in numbers is greater than in value. Since the beginning of the year, the number of installment loans granted has increased by 73.3% and their value by 27%. compared to the same period in 2023 – said Sławomir Nosal, Head of the Business Intelligence Analysis Team, Credit Information Bureau. In his opinion, this is due to the predominance of liabilities for small amounts arising from the transformation of unpaid transactions with a deferred payment term (the so-called BNPL).
Experts highlighted that a continuation of the increase in activity can also be observed in cash loans. “Their number increased by 17% compared to July 2023, and the value reached a dynamic of 27.5% year-on-year,” they calculated.
Poles are buying more in installments. Record growth in loans
Nosal highlighted that there was “clear growth” in the segment cash loans has been visible since the beginning of this year. Credit in terms of numbers increased by 11.1% and its value by 24.4%. compared to the same period in 2023 – he reported – stressing that customers were taking out increasingly large amounts of cash loans and that the main driver of sales in this segment were liabilities exceeding PLN 50,000. zloty.
The BIK study indicated that the average amount of the installment loan granted in July 2024 was PLN 2,029 and was 7.5% lower than in July of the previous year. However, the average amount of a cash loan was PLN 22,998 – an increase of 8.9% compared to July of last year.
Mortgage lending is at an all-time high. Property prices are rising and Poles keep buying
According to BIK data, in July 2024, banks granted almost half more (+48.8%) mortgage loans compared to July 2023, and compared to June 2024, their number increased by 12.6%. “In terms of value, home loans recorded an even higher 67 percent annual growth and 12.3 percent increase compared to the previous month. The still high sales of housing loans are also confirmed by the data after seven months of this year,” BIK experts said. They added that cumulatively since the beginning of the year, the number of housing loans issued has increased by 93.8 percent, and their value by an impressive 127 percent compared to the corresponding period in 2023.
“The increase in the value of mortgage loans, rather than their number, indicates that customers are taking out larger amounts of credit. This is related to the purchase of more expensive properties as a result of persistently high market prices.” – the experts explained. They also reported that in July this year the average value of housing loans granted was PLN 420 thousand and was 12% higher than last year.
Nosal highlighted that the July readings of the values of four bank loan quality indices improved “significantly” year-on-year. “Compared to June this year, there is only a slight deterioration in the timeliness of repayment of installment loans by (+0.05) and of cash loans by (+0.01). This is a significant improvement in the performance of loans in the Polish banking sector,” he said.
Quality Indices indicate a safe level of risk in the credit portfolio granted to households. Better quality of loan repayments goes hand in hand with improved creditworthiness of customers, driven by a real increase in wages. – he assessed.
