News

In 2H22, there are more and more signals of a slowdown in growth or even a decline in the prices of many building materials. Labor and land costs are also growing more slowly.

IOver the last 10 years 1.7 million apartments have been built in Poland. The share of new construction in the total stock is on average 11.3%, so there has been a noticeable renewal of the stock.

• In the first half of 2022, PKO Bank Hipoteczny’s profit before tax amounted to PLN 76.5 million and its net profit reached PLN 50.8 million.
• As at the end of June 2022, the Bank continued to be the leader of the Polish mortgage bank market in terms of the balance of mortgage covered bonds, with mortgage covered bonds of PLN 9.9 billion. In addition, as at the end of June, the Bank carried out the opening subscription of green mortgage covered bonds in EUR for our region with a nominal value of EUR 500 million, for which the issue date was set at 4 July 2022.
• The loan portfolio of PKO Bank Hipoteczny exceeded PLN 20.8 billion as at the end of June 2022 and maintained a very high quality in terms of the credit risk.

• On 27 June, PKO Bank Hipoteczny launched a subscription addressed to institutional investors for green covered bonds of EUR 500 million, maturing on 25 June 2025.
• Declarations of interest were collected from more than 50 investors for a total amount of over EUR 850 million.
• During the book bulding process a margin of 36 bp over EUR Mid-Swaps was set. The securities bear a fixed interest rate in euro. 
• PKO Bank Hipoteczny’s covered bonds will be listed simultaneously on the Luxembourg and Warsaw stock exchanges.

• In the second half of 2021, home purchases with a mortgage loan accounted for over 60% of the transaction volume. A similar percentage was constituted by the consumer demand for flats as compared to the investment demand.

• The start of the war in Ukraine generated a positive demand shock on the rental market. As a result, the availability of flats for rent decreased significantly and rental rates rose sharply. We expect that some refugees will stay in Poland for a longer period or permanently, which in the next few years will generate an additional demand for approx. 230,000 apartments.