Consumer crediting market in Ukraine to narrow by 1.6% in 2012, says market operator
Kyiv, July 12 (Interfax-Ukraine) - Consumer crediting market in Ukraine in 2012 will reach UAH 87 billion, which is UAH 1.4 billion or 1.6% down year-over-year, Financial Solutions Center Ltd. (KreditMarket) has said.
"The reasons of the market reduction is the rise in interbank crediting rates and the slow growth of deposit rates, as well as devaluation expectations and the absence of an inflow of funds from outside," Director General of Financial Solutions Center Ihor Durytsky said at a press conference at Interfax-Ukraine on Wednesday.
According to the company, not taking into account mortgage credits, the share of which after the crisis fell to 4-4.5%, in H1, in 2012 the consumer crediting market came to UAH 36.7 billion, which is UAH 3 billion or 7.6% down on H1, 2011.
The sales Director of Financial Solutions Center Denys Rakovsky said that in H2, 2012, it is anticipated that crediting will grow compared to H1, 2012 and H2, 2011 thanks to a rise in incomes, postponed demand and the entrance of new players to the market.
He said that today the key share of the market belongs to goods purchasing credits – 46.5% and cash credits – 35% (mainly using payment cards), while the share of car credits fell to 8%.
The Financial Solutions Center predicts that by the end of this year the share of goods purchase credits will continue growing and will reach 45-50%, compared to 15-17% on the automobile market. Some 6-8 banks are actively operating in the first segment and around 20 banks are operating in the second segment.
In addition, the company forecasts a large rise in cash credits – around 20-15% at the end of the year.
Mortgage crediting of individuals in 2012 will fall to UAH 3.7 billion, from UAH 4.17 billion a year before, Financial Solutions Center said.
Director of Business Development at the International Bureau of Credit Histories Andriy Kaminsky said at the press conference that recently a switch to collateral-free crediting was seen on the consumer crediting market, and the share of card credits has reached 25%, while the share of car credits and mortgage credits is falling. He said that credits on purchase of goods and cash credits amounts to up to UAH 15,000.
Commenting on fraud on the market, Kaminsky said, referring to the 7.2 million credit histories base of the Business Development at the International Bureau of Credit Histories from around 80 banks, that its share is around 1% of total number of credits issued, although up to 10% of frauds are linked to borrowers who failed to understand credit relations and did not appreciate their actual ability to repay credits. He added that the strengthening of risk management and fighting fraud had considerably reduced its level.
Fraudsters are now adapting their tactics, paying the first to third payments on credits to avoid being put on credit blacklists, he said.
He also said that over 50% of borrowers have more than one credit, and 20% - three and more credits, which shows the necessity to improve risks management at banks. The eastern region of the country has the largest number of credits among the regions of Ukraine, Kaminsky said.
According to the Business Development at the International Bureau, the share of overdue credits over the past year was 6.9%, and that for the bureau – 8%.