D'après les premiers résultats semestriels, le crédit immobilier a tiré vers le haut les bénéfices de BNP Paribas, du Crédit Mutuel ainsi que de la Banque Postale.

Mortgage credit: Banks fill up before the shortage

Posted on Jul 29, 2022, 6:56 PM

Contrary to what the brokers who asserted that the mortgage loan market is in a state of collapse, due to the rate of erosion, banks have doubled their loans since the beginning of the year. According to the first published semi-annual results, this activity increased the profits of BNP Paribas, Crédit Mutuel and Banque Postale. But all three anticipate a more complex period from the start of the school year.

Thus, at BNP Paribas, which published its results on Friday, outstanding loans increased by 4.5% in one year, driven mainly by mortgage activity. In a sign of strong momentum, the bank saw interest income jump 6.9% “with credit activity growth and the impact of the interest rate and market environment,” the group identified in its press release. Overall, France retail banking revenue increased 7.6%, partly contributing to BNP Paribas’ record second-quarter profit.

The same note in Crédit Mutuel, which anticipates a historical semester, in the words of its president, Nicholas Terry, in which the whole mortgage credit machine has erupted. The bank recorded a growth of 9.5% in its outstanding loans to 248 billion euros. By comparison, the average growth rate of outstanding mortgage loans in France is just over 6%, according to figures from the Bank of France.


But this phenomenon is more evident in La Banque Postale. La Poste subsidiary La Poste saw its mortgage loan production rise 21% compared to last year, to €6.6 billion. Unprecedented pace, again well above the rest of the market. For its chief, Philip Heim, this is explained by a form of credit rush on the part of households who have realized that the interest rate environment is changing and borrowing conditions are deteriorating.

An emergency shared by bankers. The latter has also realized that it is best to gain as many customers as possible before the context becomes more difficult. Banks warned that the rest of the year is likely to be much less good.

In the question, “the pressure” of the wear rate, which is “more and more severe,” explained Daniel Ball, Crédit Mutuel’s Managing Director. This maximum that banks can lend to rises much more slowly than credit rates. The mutual group cautioned that this risks blocking a certain number of files from the start of the school year.

Margin pressure

At La Banque Postale, we are warning of a possible movement to squeeze margins in the short term. Because mortgage flexibility is poor: it’s hard to pass rate increases like that to clients. Especially since competition is still very strong between banks in this market, as customers do not hesitate to go to the one who pays the highest rate, especially when interest rates are high.

Moreover, BNP Paribas says it is “determined to provide support [ses] customers and provide what they need,” Chief Financial Officer Lars Machenel explained at Friday’s press conference. “This is what we did in the second quarter: we responded to our customers’ demand.”

Be that as it may, if the market does indeed slow down in the second half of the year, this will finally prove right of the brokers who constantly warn of the scissors effect of the rate of erosion. However, as of today, neither the bank nor the Bank of France figures indicate this slowdown.

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