Building societies see lending volume drop by 2% in Q1-3

Prague, Oct 8 (CTK) - Building societies in the Czech Republic granted loans worth Kc32.8bn in the first three quarters of this year, a year-on-year drop of more than 2 percent, according to data of the five building societies active on the Czech market.

The number of newly signed contracts dropped by more than 100,000 year-on-year in January-September. Overall, building societies signed more then 411,000 contracts, including contracts on a hike in the target amount, in the period.

Only Raiffeisen stavebni sporitelna moderately raised the number of signed contracts in a year-on-year comparison. The other building societies signed fewer new contracts.

The significant growth in the number of contracts signed last year was a result of building societies' marketing campaigns in early 2011 that focused on acquisition of deposits in relation to changes in home building savings.

The biggest growth in granted loans of more than a quarter was reported by Stavebni sporitelna Ceske sporitelny. In contrast, Wuestenrot and Modra pyramida registered the biggest fall of almost a half.

In the entire year 2011, building societies granted loans worth Kc48bn and signed a total of around 685,000 contracts with clients, including contracts on the growth in the targe amount.

Volume of granted loans in January-September 2012:

building society volume of loans (in Kc mil.) yr/yr change (in pct) total number of contracts in thousands)
CMSS 18,932 9 % 1,820
SSCS 4,012 27 % 1,120
Modra pyramida 3,244 - 48 % 679
Raiffeisen 5,561 12 % 728
Wuestenrot 1,005 - 46 % 461
TOTAL 32,754 - 2.4 % 4,808

Number of granted loans and newly signed contracts January-September:

building society New contracts 2012 Target amount 2012 (in Kc mil.) New contracts 2011 Target amount 2011 (in Kc mil.) Number of granted loans 2012 Number of granted loans 2011
CMSS 139,334 52,301 234,578 86,916 28,885 34,619
SSCS 73,212 14,642 80,991 16,723 12,327 12,028
Modra pyramida 65,109 16,563 67,024 18,542 5,485 8,946
Raiffeisen 91,767 31,733 91,536 21,911 10,121 9,849
Wuestenrot 41,861 12,840 42,100 12,004 2,586 4,312
TOTAL 411,283 128,079 516,229 156,096 59,404 69,754

Source: building societies