CGD has utilized 46% of the young credit guarantee, amounting to 257 million euros, contributing to the rise in housing credit production from Caixa and other banks, though this is not yet the majority,” stated Paulo Macedo, Chairman of the Board of Directors, during the first-half results presentation at the bank’s headquarters in Lisbon.
The presentation revealed CGD received over 9,200 loan applications, totaling 1.8 billion euros, with 4,200 operations either completed or in the final stages of completion, amounting to over 800 million euros.
State-guaranteed lending showed a loan-to-value (LTV) ratio of 99.6%, indicating the proportion between the total loan amount on a property and the lower of its assessed value or purchase price, according to the bank.
The public guarantee for housing loans to young people up to 35 years is valid for contracts signed until the end of 2026 and allows the State to ensure, as guarantor, up to 15% of the transaction value.
In the first half, CGD experienced a 63% year-on-year increase in housing loan production to 2.581 billion euros, with 93% being fixed or mixed-rate operations.
Despite this growth, the portfolio’s increase was 8% year-on-year, or just over 2.08 billion euros.
Paulo Macedo explained that the modest portfolio growth relative to new credit production is due to early repayments and normal amortizations.
“A large amount of production is necessary for a bank of our size to grow,” he noted.
Throughout the first half, CGD financed 17,000 homes, about 90% of which were for personal use, with an average financing value close to 250,000 euros.
