Page 43 - RUSRptAug18

8.1.3 Deposits
8.1.4 NPLs
8.1.5 NIMs & CARs
8.1.7 Banks specific issues
Gross LDR stayed flat m/m in June at 85%, as corporate accounts increased 5.6% y/y and retail deposits were up 8.4% y/y. CBR funds stayed at RUB 2.7tn (but up from RUB 1.1tn in June 2017) amid the CBR sanitation programme.
Asset quality improved in June, as overdue amounts declined in both the retail and corporate segments. 1H18 profit totalled RUB 634bn and was down 18% y/y. However, excluding sanitised banks, it would have been RUB 880bn.
For the first time since November 2017 Russia's largest banks have increased the interest rates on retail deposits , with the average maximum rate increasing to 6.45% in June 2018 from 6.05%, according to the data by the Central Bank of Russia (CBR). In 2018 the average deposit rate started off at 7.33%, but then was brought down following the monetary easing by the CBR, which was in turn abruptly paused after the latest round of US sanctions in April . Deposits in the Russian banking system grew and were up by RUB425bn or 0.9% in the first quarter, latest sector overview by bne IntelliNews reported . Fitch Ratings is predicting deposits will rise 5%-7% this year. The ten largest banks in the CBR report are Sberbank ( largest share on the deposit market ), VTB, Russian Agricultural Bank, Gazprombank, Alfa Bank, Raiffeisenbank, Sovkombank, and bailed Financial Corporation Otkritie, Promsvyazbank, and Binbank. The increase in the deposit rates could be temporary, as it is linked to the introduction of short-term deposits by Sberbank and Raiffeisenbank, Vedomosti d aily commented on July 2. Analysts
43 RUSSIA Country Report August 2018 www.intellinews.com