VUB's Market Share and Financial Services slide image

VUB's Market Share and Financial Services

MORTGAGE BUSINESS FURTHER DETAILS ā†’ In the last 3 years, VUB has experienced a strong growth due to successful mortgage campaign Yearly Contracts Growth (contracts EOY) Units 97,844 2016 +10.8% 108,438 2017 +8.3% 117,491 Number of Housing Loans 2018 Yearly Outstanding Growth (outstanding EOY) EUR mln +19.9% 5,321 +16.0% 6,170 4,440 2016 2017 Outstanding of Housing Loans 2018 Visible slowdown of YoY growth in 2017 mainly due to newly introduced NBS limit on new production with LTV 80%-100% in order to mitigate negative development on real estate market values. Up to 50% share of volumes on LTV bucket 80-100% allowed since 2017/01. The final limit value (20%) on LTV bucket 80-100% with gradual reduction will be reached in 07/2019 Another macro prudential rules tightening introduced in 2018 (NBS limit on LTV 90-100% set to 0% and new NBS Limit on DTI > 8 share) in order to slowdown the trend in development of overall indebtedness of Slovak households. The maximum share of new loans for which the DTI ratio exceeds 8 is set to 10% for 1Q/2018 and will decrease to 5% (+5% if additional conditions are met) in 3Q2019 36
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