CLSA Bank Permata (BNLI IJ) targeted 50% growth in mortgage lending

BNLI targeted its mortgage to increase by 50% this year, up from Rp5.5tn last year. BNLI Retail Banking stated that up to March 2010, the bank has already seen a 40% YoY growth in its mortgage lending to Rp6.3tn. He added that the second quarter growth is stronger but no further details are given out.

Comment: There is no doubt that banks, including Permata are ramping up mortgage lending. Our data from six major mortgage lenders revealed that total mortgage credit grew 23% YoY in 1Q10. Declining rates are happening across the board which takes rates to below 10%. BNLI's rate is ranging from 8.5-9.5%, and the company also has special scheme for account holders.