Page 62 - RusRPTAug19

8.1.2 Loans
Retail lending remained robust in June, growing 1.4% m/m and 23% y/y in June, though the monthly growth rate was down from 1.6% in May, 2.0% in April and 1.7% in March.
Corporate loan growth was still sluggish in June, up just 3% YTD and 7% y/y in FX-adjusted terms. Retail deposit growth accelerated from the level of May, although that was not surprising given the long May holiday period.
The sector loan book grew 0.2% m/m in nominal terms in June (+11% y/y and +3% YTD), while in FX-adjusted terms loan growth was 0.7% m/m (+12% y/y and +5% YTD excluding banks whose licenses have been revoked).
Retail loan growth was 1.4% m/m in June (+23% y/y and +10% YTD). Corporate lending decreased by 0.4% m/m in nominal terms but was up 0.4% in FX-adjusted terms (for FX-adjusted y/y and YTD growth of 7% and 3%, respectively).
The CBR is still worried by the growing amount of consumer debt and is likely to act to cool the non-housing borrowing in the second half of this year. while the overall level of debt is not at dangerous highs yet the rate of growth of consumer borrowing is currently running at 25% which is well ahead of the growth of real wages which is running at 7%.
62 RUSSIA Country Report August 2019 www.intellinews.com