International Presence and Activities
MORTGAGE BUSINESS
FURTHER DETAILS
In the last few years, VUB has experienced a solid growth due to still strong demand from customers side and favorable
economic environment
Yearly Contracts Growth
Yearly Outstanding Growth
(outstanding EOM)
Units
117,491
(contracts EOM)
+5.3%
+7.0%
125,756
132,385
EUR mln
+11.8%
6,896
6,170
+13.1%
7,799
Dec-18
Dec-19
Number of Housing Loans
Dec-20
Dec-18
Dec-19
Outstanding of Housing Loans
Dec-20
Mortgage growth at the beginning of 2017 slowed down mainly due to newly introduced NBS macro prudential rules in order to
slowdown the trend in development of overall indebtedness of Slovak households and mitigate unfavorable
development on real estate market values.
•
•
LTV limits on new production. Only 20% of new bookings within LTV 80-90% is allowed. No LTV above 90% is allowed
since 07/2019. Net refinancing mortgage loans production is not limited
DSTI (the consumer's ability to repay) should not exceed 60% of net income less the subsistence minimum since 01/2020.
Some limits exceptions are allowed (5% of new loans + additional 5% for loans with maturity <= 5) but with maximum DSTI
equal to 70%
DTI (debt-to-income) introduced in 2018 should not exceed 8. The maximum share of new loans with DTI above 8 is set to
5% (+5% if additional conditions related to young applicants are met) since 3Q2019
39View entire presentation