Page 87 - RusRPTNov20

Deputy Finance Minister Alexei Moiseyev said earlier in 2020 that the cut-rate mortgage program subsidized by the government can cause a market bubble. The current 6.5% program, which is most popular, will end on November 1 and no decision to prolong it has been made.
Finance Ministry wants to prolong 6.5% mortgage program to 2022
The stress tests performed by the Central Bank of Russia (CBR) on the assets of non-state pension funds (NPF) show that bonds with short maturities and federal OFZ bonds remain the most reliable ​instruments, as compared to corporate bonds, ​Kommersant d​ aily reported on October 6. As reported by ​bne IntelliNews,​ the lack of reliable long money instruments has long been sees as a weakness of Russian financial system. The latest results of the CBR stress tests show that NPFs are unlikely to invest their funds in long-term instruments in the real sector, as at least 75% of their portfolio has to comply with the central bank's recommendations. Analysts surveyed by ​Kommersant n​ ote that average maturities for NPFs investment remains at under three years. Even without CBR's regulation the pension funds are diversifying away form long instruments due to higher perceived risks and price volatility in times of the crisis.
Russian state housing agency Dom.RF and Frank RG agency have devised a monthly rating of mortgage-issuing banks, ​Vedomosti ​daily reports on October 6. In a first, the rating will provide the actual mortgage rates across various segments, as well as other indicators. As reported by bneIntelliNews,​ supportedbygovernment,the​issuanceofmortgagesin Russia jumped by 38%​ year on year in absolute terms to 0.158mn loans, and by 59% y/y in monetary terms to RUB375bn ($5bn) in August 2020. The ratings will indicate which banks dominate in such segments as new housing, refinancing, individual housing, Mikhail Goldberg of Dom.RF told ​Vedomosti​. He reminded that in August the number of mortgage applications in top 20 Russian banks topped 0.6mn as compared to 0.45mn in March. Analysts surveyed by ​Vedomosti b​ elieve that even a rating of top 10 banks would suffice to give a clear market picture, as the concentration is high with top 20 banks accounting for 97% of the markets. They also noted that information on bad mortgage loans is not covered.
8.1.8 ​Sberbank news
87 ​RUSSIA Country Report​ November 2020 www.intellinews.com
Sberbank released stronger than expected 3Q20 IFRS results.
Solid NIM of 5.26% (+20bp y/y; -7bp q/q) with NII of RUB411bn (+16% y/y; +3% q/q) – mostly inline vs BCSe and consensus, given current monetary easing and lowered deposit insurance costs (from 0.15% to 0.1% per quarter) helped on interest expense side with average cost of retail funding –10bp to 4.0% and corporate -10bp to 3.0%. On Interest