VEDOMOSTI. Gazprombank is in talks with lending institutions over the purchase of mortgage portfolios, Gazprombank First Vice President Valery Seregin told business daily Vedomosti. The bank, as he said, is also ready to buy mid-sized portfolios (Rub 200+ mln), and in the aggregate it intends to spend Rub 20-25 bln on the purchase of mortgage portfolios.
"This is another channel of expanding the bank's credit portfolio in addition to loans the bank issues itself," Seregin said. He specified that Gazprombank enters the loan cession market rarely, the bank bought auto loans a decade ago. Mortgage loan were acquired by its subsidiary, GPB-Ipoteka, although its loans (worth Rub 11 bln) were put on Gazprombank's books in 2016.
"Buying mortgage portfolios leads to growth of the clientele, will allow the bank to carry out cross sales as these clients will be served by the bank within five to seven years," Seregin commented, noting the bank is interested in boosting retail lending.
Retail loans (70% of which are mortgage loans) account for 10% of Gazprombank's total credit portfolio. Based on IFRS data, in the third quarter of 2016 the bank had Rub 217 bln in mortgage loans granted and Rub 11 bln of mortgage loans that it bought.
"To issue retail loans is hard work and if the bank is competent in managing portfolios, it is easier to buy them," said Moody's analyst Olga Ulyanova, noting the bank could face in the market a shortage of quality, standardized and suitable-for-purchase mortgage loans as mortgage loans in Russia are mainly extended by major market participants (Sberbank accounts for around 55% of mortgage loans granted) that are interested in keeping them on their balance sheets.
For the time being, there are no deals transacted. The target is from a discount of 4-5% to 1-2% of premium depending on the category of real estate, duration of the portfolio and the average rate, Seregin specified. Mortgage portfolio acquisition terms may include a demand to buy loans that become overdue.
"Maybe the bank stands ready to buy mortgage loans at a premium to attain the retail portfolio expansion target. The interest rates offered in the money market are expected to be cut, while under already granted mortgage loans the interest rate is fixed, so the bank may increase margin," Fitch Ratings analyst Alexander Danilov admits.
Expanding retail business is not a fast process. If retail operations in Gazprom's portfolio reach 15% over the next two years, this will be remarkable achievement, Ulyanova considers.