Page 83 - RusRPTFeb21

8.1.2​ Loans
Corporate credit growth doubled to 9.9% in 2020, while retail lending growth slowed to 13.5% from 18.6%.
The corporate loan portfolio grew by RUB281bn ​in December (+ 0.6%), which corresponds to the dynamics in November. ​Banks’ corporate lending edged up 0.6% in December and 10% in 2020 overall, almost doubling the 2019 result.
The growth was in systemically important credit institutions (SZKO) (+ 1.2%), while the portfolio of other large banks from the top 100 decreased (-1.6%).
About RUB85bn growth was provided by project financing of construction housing, which is one of the fastest growing corporate segments (growth 3.5 times since the beginning of the year) due to the transition to escrow accounts.
In general, in 2020, the increase in corporate loans amounted to 9.9%, which is almost 2 times higher than in 2019 (5.8%). Thus, banks helped the economy and borrowers to more easily endure the acute phase of the crisis by providing resources when they were most needed.
Retail portfolio growth in December was lower than in previous months
(+ 1.2%, adjusted for securitization). ​Mortgage lending continued to be the main driver of the growth having set a new record of 25% for the year (vs around 20% in 2019).
The mortgage portfolio, according to surveys of the largest banks3, grew by 2.8% in December (adjusted for securitization), which is slightly lower than the rate in September-November (about 3%). The share of the program "Preferential mortgage 6.5%" 4 in loans issued in December decreased in comparison with previous months and amounted to about 20% (109bn). Total since the launch of this program loans were issued in the amount of over 1 trillion5.
At the end of 2020, the growth of the mortgage portfolio (adjusted for securitization) amounted to almost 25%, ​exceeding the result of 2019 (20%). In 2020, significant support to demand, in addition to lower rates, a large-scale program of state support (including “Preferential mortgage 6.5%”) provided. But as a result, a number of undesirable effects appeared, in particular high growth in the cost of housing (for 9 months of 2020 - about 10.5% 6, which is significantly higher inflation; also taking into account the reduction in household income), and this largely negates the benefits for borrowers from lower rates. In addition, banks began to issue more loans with a low (less than 20%) down payment: 35% of loans in Q3 2020, up from 28% in Q2 2020.
83 ​RUSSIA Country Report​ February 2021 ​ ​www.intellinews.com