Mortgage Approvals – October 2014

Banking & Payments Federation Ireland (BPFI) has published the latest figures from the BPFI Mortgage Approvals Report for the three months ending October 2014.

The following are the key elements:

  • A total of 2,582 mortgages were approved per month, on average, in the three months ending October 2014, of which 2,374 (92%) were for house purchase.
  • The number of mortgages approved rose by 45.4% year-on-year and fell marginally by 0.2% month-on-month.
  • The value of mortgages approved per month, on average, in the three months ending October 2014 was €466 million, of which €443 million (95%) was for house purchase.
  • The value of mortgage approvals increased by 50.8% year-on-year and fell by 1.3% month-on-month.

The year to end-October has seen some 21,044 mortgage approvals, up 40.9% on the same period in 2013, valued at €3.7 billion.

Data collection for the BPFI Mortgage Approvals Report began in September 2012 covering the period from January 2011 onwards in respect of the market’s main mortgage lenders. The BPFI Mortgage Approvals Report October 2014 is available on the BPFI website here.

All figures are based on the three-month moving average. Year-on-year compares the average for the three months ending October 2014 with the three months ending October 2013. Month-on-month compares the average for the three months ending October 2014 with the three months ending September 2014.

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Note: Banking & Payments Federation Ireland is the voice of banking and payments in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Contact: Jillian Heffernan, Head of Communications, BPFI, ph: 01 474 8835 / 087 9016880

Customers make over 28 million online and mobile banking payments in first half of 2014

  • Over 179 million online and mobile account log ins

The latest figures from the BPFI Online and Mobile Banking Report show that customers made over 28 million online and mobile banking payments in the first six months of 2014 – about 1.1 million payments per week. Mobile payments, which are included in the report figures for the first time, accounted for just over one-in-three of these payments.
The report, which provides quarterly data on trends in online and mobile banking Ireland, shows that by the end of June 2014 there were 2.4 million active users of online banking – an increase of 9.8% on the same time last year. There were one million active users of mobile banking.
The report also shows the frequency of consumer usage of online and mobile banking. In the year to date online and mobile banking customers logged into their accounts over 179 million times, with some 83 million logins through mobile banking app.

The BPFI Online and Mobile Banking Report can be viewed on the BPFI website here.

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Note: Banking & Payments Federation Ireland (BPFI) is the voice of banking and payments in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Contact: Jillian Heffernan, Head of Communications, BPFI, ph: 01 474 8835 / 087 9016880

New Mortgage Lending in Q3 2014

  • 6,308 mortgages drawn down to the value of €1,126 million
  • Loan volumes up 40.7% year-on-year, 31.3% quarter -on-quarter
  • Some 93% of new mortgage credit goes to home purchasers

The BPFI/PwC Mortgage Market Profile, published today,provides an account of mortgage lending activity during the third quarter (Q3) of 2014.

The following are the key elements:

  • A total of 6,308 mortgage loans were drawn down in Q3 2014.  At 51.7%, First Time Buyers remained the largest segment followed by Mover-Purchasers at 35.5%
  • The number of mortgages drawn down in Q3 2014 rose by 40.7% compared to the same quarter in 2013 (year-on-year) and by 31.3% compared to Q2 2014 (quarter-on-quarter).
  • The value of mortgages drawn down in Q3 2014 was €1,126 million.  First Time Buyers accounted for 48.2% and Mover Purchasers for 44.6% of this total, meaning that 92.8% of mortgage credit was taken out by house purchasers.
  • The value of mortgages drawn in Q3 2014 rose by 50.1% compared to the same quarter in 2013 (year-on-year) and by 37.3% compared to Q2 2014 (quarter-on-quarter).

This graph presents the trend in the volume of mortgage approvals and mortgage drawdowns:

Mortgage Market Profile Q3 Graph 3

The BPFI/PwC Mortgage Market Profile Q3 2014 can be viewed on our website here and the BPFI/PwC Mortgage Market Profile Data Series Q3 2014 can be downloaded here.

 Note: Banking & Payments Federation Ireland is the voice of banking and payments in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Contact: Jillian Heffernan, Head of Communications, BPFI, ph: 01 474 8835 / 087 9016880

BPFI Welcomes Positive Trends in SME Credit Demand Study

The Department of Finance/Red C SME Credit Demand Survey published today shows a number of positive trends which are welcome. These include a further increase in the overall application approval rate by banks and further improvement in the turnaround time for application decisions.

Among those SMEs seeking credit, the research provides the following particularly positive and welcome trends:
• a further improvement in trading conditions among SMEs
• a further increase to 86% in the number of applications approved in full/part
by banks
• a further improvement to 62% in the number of credit applications processed within the 15 working days target turnaround time

While an increased number of SMEs report a welcome improvement in trading conditions during the April-September 2014 period, it is notable that this is not mirrored in an increase in demand for credit – rather a reduction to 31% in the proportion of SMEs seeking credit is recorded. The authors’ commentary that many SMEs are still focused on stabilising and consolidating their business performance rather than pursuing new growth opportunities is supported by feedback from BPFI-member banks over recent months.

This same sentiment is also reflected in the latest DKM/BPFI SME Market Monitor which was published earlier this week (the report can be viewed on our website here). Here the significance of increased disposable incomes and domestic demand for the welfare of the SME sector was particularly highlighted. As its author, Annette Hughes, stated: “The increased disposable income of those coming off the Live Register into gainful employment can be expected to benefit SMEs as it generates more spending power”.

The business lending banks have a range of finance and non-finance initiatives in place to support viable businesses from the survival stage, through the recovery phase and on into expansion and growth. All SMEs seeking credit are strongly encouraged to develop a robust business and financial plan and to submit this as part of a formal application to their bank.

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Note: Banking & Payments Federation Ireland (BPFI) is the voice of banking and payments in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Contact: Jillian Heffernan, Head of Communications, BPFI, ph: 01 474 8835 / 087 9016880

Banking & Payments Federation Ireland National Conference 2014

Innovation in Banking – Engaging the Customer

Banking & Payments Federation Ireland (BPFI) today held its annual national conference, Innovation in Banking – Engaging the Customer, at the Radisson Blu Hotel in Dublin. Hosting a gathering of senior banking executives and policy makers from Ireland, the UK and Europe, this year’s conference discussed the future of innovation in banking and payments as well as the challenges and opportunities that innovation presents to service providers and their customers.

Speaking about the ever changing environment in which banks are now operating, David Duffy, President, Banking & Payments Federation Ireland and Chief Executive, AIB said: “We’re now at the point of arrival where we can talk about the future rather than dwell upon the legacy of the past. With the continuing advancements in technology, the operating environment is completely transformed and this is a once in a generation change to existing bank models. Customers are changing and we need to adapt quickly. It is customers who are now deciding how we bank and how we serve those customers, not banks, so we must ensure that the thinking in every bank is no longer what works for the bank but what works for the customer.”

“If we are going to survive, we have to recognise changing customer needs and become more innovative in how we service our customers. The future model of banking will deliver a highly tailored, dynamically adaptive customer experience and offer products which are suitable for customers’ needs enabled by best in class digital technologies.”

Among those contributing to the conference were: Steve Pateman, Executive Director and Head of UK Banking, Santander UK, who addressed Innovation in Consumer Banking and Søren Kyhl, Executive Vice President, Head of Transaction Banking, Corporates & Institutions and Business Banking, Danske Bank Group, who addressed Innovation in Corporate and Institutional Banking. Other speakers included Brian Hayes, MEP, Sharon Donnery, Director of Credit Institutions, Central Bank of Ireland who provided the regulators perspective, Dr. Philip O’Sullivan, Financial Services Innovation Centre, UCC and Andrew Rush, Head of International Product & Innovation, Elavon. Joe Nocera, Banking Partner, PwC US addressed the conference on the future of trust in digital banking.

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Banking & Payments Federation Ireland (BPFI) is the voice of banking and payments in Ireland representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

For Further Information Contact: Jillian Heffernan, Head of Communications, BPFI, ph: 01 474 8835 / 087 9016880

SME Market Monitor confirms recovery is gathering momentum

Time for modest optimism around the prospects for SME sector

The DKM/BPFI SME Market Monitor November 2014, prepared by DKM Economic Consultants (DKM) and published today by Banking & Payments Federation Ireland (BPFI), strikes a note of modest optimism around the prospects for the SME sector.

Tracking trends across a range of indicators which are important for the performance of the SME sector, this latest DKM/BPFI SME Market Monitor is associated with the best set of indicators for almost six years. As its author, DKM’s Annette Hughes, states:

“The performance of virtually every indicator in the Monitor has improved, with the possible exception of earnings and disposable income, which have yet to display signs of recovery…..The sustained increases in employment appear to be finally feeding through to consumption as all components of domestic demand increased in Q2 2014.”

Other notable positive trends identified in the DKM/BPFI SME Market Monitor include:

  • Construction is bouncing back on foot of the renewed focus on the sector and should see substantial gains arising from the social housing measures in Budget 2015
  • All components of Domestic Demand increased quarter on quarter in Q2 2014. Personal consumption increased by 0.3%, government consumption increased by 3.8% and investment increased by 9.1%.
  • Overseas tourist numbers were up strongly and reached the highest number in any quarter since Q4 2008 in Q3 2014. The retention of the 9 per cent VAT rate in Budget 2015 will continue to support the sector, where many SMEs are active in the form of hotels, B&Bs, restaurants, bars and retail outlets.
  • New lending to SMEs was up strongly in Q2 2014 (+55.7% year on year), albeit from a low base; while outstanding SME debt continues to fall.

The DKM/IBF SME Market Monitor can be viewed on the BPFI website and www.dkm.ie

Note: Banking & Payments Federation Ireland is the voice of banking and payments in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Contact: Annette Hughes, Director DKM Consultants, Ph: 01 6670372
Jillian Heffernan, Head of Communications, BPFI, Ph: 01 4748835 / 087 9016880