Central Bank reports mortgage disbursements grow nearly 70% in Q2

Central Bank reports mortgage disbursements grow nearly 70% in Q2
(FILE)

NASSAU, BAHAMAS — Mortgage disbursements for new construction and repairs grew by nearly 70 percent in the second quarter, according to the latest data from the Central Bank.

The regulator, in its quarterly economic review for June, noted that construction sector activity during the second quarter remained supported by ongoing small to medium-scale foreign investment projects. Meanwhile, with regard to domestic private sector activity, residential and commercial financing indicators were mixed.

The Central Bank of The Bahamas.

“In domestic financing developments, total mortgage disbursements for new construction and repairs — as reported by banks, insurance companies and the Bahamas Mortgage Corporation — grew by 66.6 percent ($9.8 million) to $24.6 million, a reversal from a $12.5 million decline in the prior year,” the Central Bank noted.

“Underlying this outturn, residential mortgage disbursements expanded by 68.6 percent ($9.9 million) to $24.2 million, a turnaround from a 45.2 percent reduction last year.

“Conversely, the commercial financing segment remained weak, decreasing by 8.5 percent to a constrained $0.3 million, albeit markedly lower than the 63.5 percent contraction in 2020.”

The regulator further noted that total mortgage commitments for new buildings and repairs — a forward-looking indicator of domestic activity — rose by eight to 86, compared to the same period in 2020, while the corresponding value increased by 20.1 percent to $16.1 million.

An analysis by loan category revealed that commitments in the heavy-weighted residential sector rose by 12 to 85, while the relevant value advanced by 35.4 percent to $15.8 million.

In an offset, commercial approvals decreased by four to one, with the associated value contracting by 80.5 percent to $0.3 million.