CaixaBank Mortgage Loans: Increase in Risky and Questionable Payments

The latest accounts presented by CaixaBank show a decrease in the number of mortgage loans that are circulated and an increase in both those considered risky and those with questionable payment.

In the first quarter of the year, the entity has a Net profit provided of 1,005 million euroswhich represents an increase of 17.5% more between January and March 2023, while it has recorded an impact of 493 million euros due to the extraordinary tax on the sector, 32% more than at the beginning of the year last year.

In these first three months of 2024, Its mortgage portfolio stands at 131,540 million euros, compared to the 132,272 million recorded in December. And more than a tenth of that amount is according mortgages with a Loan to Value (LTV) greater than 80%which are considered as risk loans, with a total amount of 13,794 million euros.

Despite the fact that this type of loan is the one with the least weight in the portfolio (41,504 million are mortgages with an LTV of less than 40%; another 41,310 million are between 40% and 60%; and another 34,932 million between 60% and 80% of the assessed value of the homes), In the last three months his number has increased, which has not happened since the summer of 2022.

Plus, too the proportion of doubtful mortgage loans has increased (that is, the volume that could basically expire), which has received the first rebound since the summer of 2023.

According to data from the financial institution, 1,635 million euros of these 13,794 million euros are in this situation. On the other hand, at the end of 2023 the questionable number of mortgages with an LTV higher than 80% was 1,571 million euros, out of a total volume of 13,640 million euros.

At the moment, Sub-prime mortgages account for nearly 40% of the bank’s non-performing loan volume (3,608 million euros at the end of the first quarter).

The next most questionable segment are mortgage loans whose amount is between 60% and 80% of the assessed value of the homes (725 million), while loans with an LTV of less than 40% are the lowest default risk. (538 million). The other 709 million comes from mortgages with a ratio between 40% and 60%. All sectors have recorded an increase in questionable volume in the first quarter of 2023.