Page 64 - RusRPTMar20

Retail loan growth reached 0.8% m/m in January or 17.9% year-on-year​, according to the Bank of Russia. This represents a deceleration from 1.3% m/m growth rate in 2H19 and 18.5% y/y retail lending market growth reported for December 2019. Still, given the expected increase in maternity capital and increase in social spending announced by President Putin in January, bankers expect the retail lending growth to receive a new boost starting from March. As a result, bankers are still stay with 15% y/y retail lending growth forecast for this year.
Corporate lending grew at just 2% y/y (3% y/y FX-adjusted), ​and, according to the CBR, this could be due to large repayments for a number of borrowers. Sberbank CIB expects corporate loan growth to see a mild pickup in 2020 (it projects 7%) on lower interest rates and a slightly better investment climate.
8.1.3​ Deposits
Retail deposits were seasonally weak in January​, down 1.5% m/m on an FX-adjusted basis, but annual growth remained at 10%. Sberbank CIB expects this to slow in 2020 given lower market interest rates and increasing interest in investing in securities.
FX-denominated deposits were up 2.8% m/m in original-currency terms, while ruble-denominated deposits declined 1.4% m/m.
Corporate deposits were up 0.5% m/m in nominal terms and down 0.1% m/m in FX-adjusted terms, for FX-adjusted y/y growth of 4%.
64​ RUSSIA Country Report​ March 2020 ​ ​www.intellinews.com