Bank Maskan Loans Top $680m in Q1

EghtesadOnline: Bank Maskan, the agent bank of Iran's housing sector, allocated a total of 30 trillion rials ($686 million) to all applicants during the first three months of the current fiscal year ending June 21.

News ID: ۷۸۳۳۹۵

24 July 2018

This was doled out in the form of 85,140 loans, according to a performance report published on HIBNA, the official news outlet of the bank.

However, this volume was for all loans extended by Bank Maskan. According to its latest report, the lender allocated 71,889 loans worth about 28.07 trillion rials ($642 million), the overwhelming majority of its total volume of loans, to the country's housing and construction sector that is currently experiencing a period of boom after at least five years of relentless recession.

"The highest number of allocated loans in the housing and construction sector belonged to Tehran Province," the report said, noting that by the end of the first quarter of the current year (June 21), the most populated province in Iran received 19,388 loans, according to Financial Tribune.

The rial value of those facilities stood at about 8.78 trillion rials ($200.95 million). Tehran's western districts and regions received the highest number of loans at 8,564.

After Tehran, Bank Maskan allocated the largest number of loans to the western Kermanshah Province that was last year hit with a massive 7.2-magnitude earthquake on the Richter scale. The natural disaster claimed the lives of at least 500 Iranians and destroyed many homes.

Kermanshah's residents received 10,709 housing and construction loans worth 2.15 trillion rials ($49.16 million).

"The majority of allocated facilities in this province were spent to rebuild homes destroyed in last year's earthquake," the report said.

Alborz, Khuzestan and Khorasan Razavi provinces rounded up the list of top five provinces that received the highest number of loans from Bank Maskan during the first quarter of the fiscal 2018-19.

According to the bank's report, Alborz Province received 3,866 loans worth 1.42 trillion rials ($32.50 million) and Khuzestan and Khorasan Razavi respectively received 3,481 and 3,343 loans valued at 1.41 trillion rials ($32.46 million) and 1.55 trillion rials ($35.60 million) respectively.

The provinces of Mazandaran, East Azarbaijan, Isfahan, Gilan and Fars completed the list of top 10 provinces that received the highest number of facilities from Bank Maskan by the end of Q1.

Bank Maskan's previous report published in mid-July showed that the total number of loans allocated during Q1–at 85,140–experienced an 82.2% increase compared with the same period of previous year when 46,718 loans were allocated.

The Central Bank of Iran on Sunday published its latest report on the lending portfolio of the banking system, indicating that the country's banks and credit institutions allocated 1.17 quadrillion rials ($27 billion) as loans during the first three months of the current fiscal year.

The banking system handed out 1.66 million loans worth 165 trillion rials ($3.78 billion), which were 16.3% higher when compared with the Q1 of the previous year.