Mortgage Approvals – August 2016

Banking & Payments Federation Ireland (BPFI) has published the latest figures from the BPFI Mortgage Approvals Report for the three months ending August 2016.

The following are the key elements:

  • A total of 3,411 mortgages were approved per month, on average, in the three months ending August 2016 – some  1,640 (48.1%) were for first-time buyers (FTBs) while mover purchasers accounted for 1,120 (32.8%).
  • The number of mortgages approved rose by 25.7% year-on-year and increased by 4.2% month-on-month.
  • The value of mortgages approved per month, on average, in the three months ending August 2016 was €682 million – of which €314 million (46.0%) was accounted for by FTBs and €271 million (39.7%) by mover purchasers.
  • The value of mortgage approvals rose by 2% year-on-year and by 3.5% month-on-month.
  • On a year to date basis growth remains modest with mortgage volumes up 0.7% and mortgage values up 5.5%.

Both re-mortgage and top-up mortgage approvals grew on a year-on-year basis with re-mortgage (or switching) activity accounting for 8.5% of the value and 7.7% of the volume of mortgages as approval activity more than doubled year on year.

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 August  2016  as well as the time series data file is available on the BPFI website 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, 087 9016880

All figures are based on the three-month moving average.  Year-on-year compares the average for the three months ending August 2016 with the three months ending August 2015.  Month-on-month compares the average for the three months ending August 2016 with the three months ending July 2016.

Federation of International Banks in Ireland Hosts Annual Lunch

The Federation of International Banks in Ireland (FIBI), an affiliate of Banking and Payments Federation Ireland, held its annual lunch today in the Westin Hotel, Dublin.

Speaking at today’s event, Group Chief Economist with Unicredit Bank, Erik Nielsen, addressed the significance for the international banking sector of a range of current global economic factors including Brexit:

“The outcome of Brexit is more reflective of UK specific issues and a weak UK Prime Minister, than a deeper EU crisis. In addition to severe political uncertainty in the UK, the decision is likely to reduce UK growth, starting later this year, and probably over the longer term, while the negative effects on the Eurozone as a whole will be mild and short. That said, Ireland will be among those partner countries hit relatively more.”

Also speaking at the event FIBI Chairman, Jonathon Lowey, discussed the fallout from Brexit as well as outlining some of the actions which FIBI it taking to strategically position the international banking sector here for the future:

“It’s also well recognised that Brexit presents many challenges for the economy as a whole.  Key among these for our sector in the short term will be the capacity and disposition of the Central Bank of Ireland to engage early with prospective businesses and the timeliness and responsiveness of that engagement.  Longer term, we would very much welcome an expansion of the Central Bank’s remit to include some role in promoting Ireland as a suitable location for international financial services.  There is no reason why such a role cannot be effectively fulfilled alongside a strong regulatory function – as the UK’s Financial Conduct Authority, among others, has clearly demonstrated.”

 “For our part FIBI recently established an International Banking Working Group which draws its membership from the C-suite community of many of the international firms currently operating here.  We see this group as helping to identify areas where changes are required to position the international banking industry strategically for the future and to harness the new structures put in place under the Government’s IFS 2020 strategy.”

 ENDS/

For further information contact: Jillian Heffernan, Head of Communications, BPFI, ph: 01 474 8835 / 087 9016880

 

SOLD OUT – BPFI National Conference 2016 – Delivering Service for Customers – SOLD OUT

This event is now sold out. If you would like to add your name on our waiting list, please email events@bpfi.ie.

Banking and Payments Federation Ireland will hold its National Banking Conference, Delivering Service for Customers, on Thursday 27th October at The Marker Hotel, Dublin. This year’s flagship event will bring together key senior bankers, policy makers and other key stakeholders to examine the impact of digital innovation on customer services and the policy and regulatory environment necessary to support this.

Through a series of key note speeches, panel discussions and a banking roundtable the conference will tease out a number of key themes which will question the growing challenge of delivering good customer service across complex multichannel platforms, how EU policy can be conducive to delivering good customer service and how financial services can unlock the potential of the data analytics to improve customer experience and drive efficiencies and growth.

The conference will be opened by Minister of State for Financial Services, Eoghan Murphy TD, who will be joined by a distinguished line-up of speakers to address these issues and to discuss them with conference delegates.  The conference will also afford participants a valuable opportunity to network with peers from across the banking and wider financial services industry.

Group bookings

For individual bookings, please click on the ‘Book Now’ button below. For organisations wishing to send several of their team, we are pleased to offer further discounts for group bookings (applicable where all attendees are employed by the same organisation and are registered under one booking):

  • 4 for the price of 3
  • 7 for the price of 5
  • 10 for the price of 7
  • For groups of 12 or more, every second delegate attends free of charge

To take advantage of this opportunity, please complete the registration form available here and send it to Lisa Shevlin at events@bpfi.ie

Housing supply shortages continue despite significant increase in new builds

Banking & Payments Federation Ireland (BPFI) today published the BPFI Housing Market Monitor for Q2 2016. The monitor draws on a range of published data under the three key headings of housing supply, housing prices and rents and housing transactions for its assessment of the current state of the housing market.

In his commentary accompanying the report, BPFI’s Economist and Head of Accounting & Tax, Ali Uğur, highlights the on-going issue of housing supply shortage and estimates a large shortfall in the number of housing units required despite a significant increase in both housing completions and commencements:

“Housing supply shortages seem to be continuing in Ireland, and particularly in Dublin, even though new construction has increased significantly in the past two years, albeit from a low level. The latest data from the Department of Housing, Planning, Community and Local Government show that 6,642 housing units were completed in the first half of 2016, compared to 5,625 units during the same period in 2015, an 18% increase. If the same levels of activity seen in the second half of 2015 continue for the second half of 2016, it is likely that there will be around 15,000 units completed in 2016, which is still well below the estimated requirement of 25,000.”

His analysis also examines vacancy rates across the country and suggests that this is something which could be explored further to assess if there are ways in which it could help to alleviate the current supply shortage:

“The county with the highest vacancy rate was Leitrim (29.5%), followed closely by Donegal (28.2%) and Kerry (24.2%). The counties with the lowest vacancy rates were Kildare (6.3%), Dublin (6.9%) and Meath (7.5%). Excluding holiday homes, according to Census 2016, there were 35,293 vacant dwellings in the Dublin region in 2016, with around 69% of this vacant stock accounted for by Dublin City. In this context it is perhaps useful to examine in further detail the number of vacant homes particularly in the Dublin region with a view to identifying measures to help short-term supply challenges faced by the residential construction sector.”

The BPFI Housing Market Monitor is published quarterly and can be viewed on the BPFI website here.

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, 087 9016880