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Helgi's Point - How Profitable Is Mortgage Lending?


Language: Czech / English
Provider: 2013
Pages: 1
The mortgage lending boom has been one of the key drivers of rising real estate prices, but has also fuelled banks' asset and profit growth over the last decade. From virtually nothing in 1998, mortgage loans represent nearly a third of banks' loans now. As mortgage loans have grown to a sizeable amount, profitability increased and mortgage business became an important contributor to banks' overall profitability. Based on the financials of Hypoteční banka, the largest mortgage lender, we guess-timate that mortgage lending generated 15% of total profit of the Czech banking system in 2012, three times as much as five years ago. ČSOB seems to have the largest part of profit coming from the mortgage lending business within the TOP3 banks. It’s more than 20% on our estimates. On the other hand, Česká spořitelna seems to generate only 13% from mortgages
Banking | Czechia | March 25, 2013
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Excel Sheet, 1 pages