Bloomberg News

Swedbank Mortgage Sales in Estonia Outpaced Market in 2011

March 13, 2012

Swedbank AB (SWEDA)’s sales of mortgage loans in Estonia exceeded overall market growth last year and the trend will probably continue this year, the biggest Baltic lender said.

Estonian mortgage sales increased 25 percent in 2011, compared with market growth of 15 percent, Swedbank AS, the local unit of the Stockholm-based bank, said in an e-mailed statement today. Growth was mainly underpinned by faster-than- expected improvement of the labor market and positive developments in the economy as a whole, it added.

A third of Swedbank’s Estonian clients who had difficulties with mortgage payments in past years have solved their problems, according to the bank. The stock of outstanding loans to households has declined by eight percent in the last three years and the deposits have increased 20 percent. Housing prices and transaction volumes probably won’t change significantly this year, it added.

To contact the reporter on this story: Ott Ummelas in Tallinn at oummelas@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net


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