Investor Presentaiton
French market
French home loans market
Market dynamics (2017) 23
■ In a context of sustained low borrowing rates, the housing has been
very dynamic in 2017 in terms of volumes and prices. In a context
where the number of transactions increased 15% over the year, home
prices increased sharply in Paris (+8.6%) and in France (+3.9%). The
sustained level of interest rates increased the purchasing power of all
segments of borrowers.
Production and outstanding balance of home loans (EUR bn) 26
Renegociations
Production
Outstanding
847
874 907 927
964
998 1,058 1,084
798
710
738
295
278
220
■ Production has been contrasted over the year, with a peak over 1H
where the 12 rolling month growth was up to 59%, and a slowdown on
the second half of the year.
136
140
158
144
151
99
122
98
108
89
98
Borrowers preferred fixed rate loans (97.9% of new lending) and opted
for slightly longer maturities (19y in 2017).
18
121
160
137
80
■ The average LTV of all home loans increased slightly to 72.3% while
the credit risk decreased with LICs observed on average at 4.4bps of
outstanding loan balances in 201721.
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1H18
French house price index (2015 average = 100)27
107.6
103.3
105.9
105.1
105.7 105.9
102.1 102.1 102.7
103.1
103.8
102.4
101.5
105.4 106.5
102.4
105.2
101.5
102.4
105.1
100.9
103.4
104.3
102.8
98.1
102.7
102.9
99.7
101.7
102.4
102.7
99.4
96.7
101.8
100.2
96.6
100.4
99.5 100.1
99.8
95.5
99.2
95.7
98.7
97.4
96.0
94.2
لال
2018
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
23
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