In January 2014, the amount of mortgage loans granted in Russia increased 1.52-fold to RUB 79.03 billion, according to the Agency for Housing Mortgage Lending's research note.
The total number of mortgage loans increased 1.42 times year-on-year to 47,724.
This growth of the mortgage market was in many respects driven by macroeconomic instability and ruble depreciation resulting in a higher investment appeal of real estate assets. Some borrowers chose to withdraw their deposits and to invest in residential property using mortgage loans. Besides, mortgage loan rates stayed fairly high in January-March 2013 (12.8 - 12.9%) resulting in a lower demand for mortgage products at that time, AHML emphasizes.
In January 2014, the average rate on ruble-denominated mortgage loans was 12.3%, 0.4 p.p. lower than in January 2013. At the same time, despite the growing number and amount of mortgage loans provided in January and lower rates on banks' mortgage programs announced in the second half of 2013, the average interest rate on mortgage loans grew from 12.1% on January 1, 2014 to 12.3% as of February 1, 2014. One of the reasons for this change was the growing percentage of borrowers ready to accept a bit higher rate for milder credit accommodation terms, AHML analysts points out.
The total mortgage portfolio of the banks has reached ca. RUB 2.68 trillion and continues to grow. For the last 12 months, the mortgage portfolio increased by RUB 670 billion (33.3% of the portfolio estimated as of February 1, 2013).
OJSC Agency for Housing Mortgage Lending / AHML (tax number: 7729355614) was established in 1997. AHML's mission is to contribute to the development of the federal housing mortgage lending system in Russia. The agency's standards are employed by operators in 78 subjects of the Russian Federation. 100% of the company's shares belong to the state.
IFRS net profit of OJSC AHML for 2012 increased by 4.5% to RUB 8.325 billion from RUB 7.967 billion in 2011. Interest income increased by 37% to RUB 5.122 billion from RUB 3.735 billion, net interest income by 13.3% to RUB 14.626 billion from RUB 12.907 billion, pre-tax profit by 6% to RUB 10.313 billion from RUB 9.719 billion.
RAS net profit of AHML for 9 months 2013 grew by 4.4% to RUB 6.453 billion from RUB 6.178 billion for the same period last year. Revenue grew by 10.7% to RUB 35.725 billion from RUB 32.253 billion, sales profit by 23% to RUB 9.193 billion from RUB 7.476 billion, pre-tax profit by 4.75% to RUB 7.896 billion from RUB 7.537 billion