Page 88 - RusRPTFeb21

8.1.4​ NPLs
Arrears of corporate borrowers remained almost unchanged in December, and even decreased in retail - by RUB9.2bn. (-1.0%).
In general, in 2020, despite fears, there was no significant deterioration in the quality of loans. The share of problem and bad loans (quality category IV and V loans) in the corporate portfolio decreased to 10.1% as of November 30, 2020 (latest available information) from 11% at the beginning of the year - mainly due to portfolio growth (denominator effect).
In the segment of unsecured consumer loans, the share of non-performing loans (overdue more than 90 days) increased to 9.0% from 7.5%, which is not critical, but remained in the mortgage portfolio at the level of 1.4%. At the same time, these problem loans do not pose a big risk, since they are reliably covered by reserves: corporate loans - by 74%, and taking into account all portfolio reserves - by 97%; retail - by 88 and 110%, respectively.
Support measures for borrowers from the affected industries, including loan restructuring, helped to avoid the more serious impact on credit quality.
In December there was an increase in demand for restructuring loans to SMEs - by 71.2%, to RUB29.5bn. At the same time, the volume of loans to the population, restructured over the month, on the contrary, decreased by 17.2%, to RUB26.9bn. A total of about RUB6.8 trillion has been restructured since the
88 ​RUSSIA Country Report​ February 2021 ​ ​www.intellinews.com