Page 94 - RusRPTOct20
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8.1.2 Loans
Loan portfolio growth in August remained solid amid state support programmes and lowering interest rates, even excluding the FX factor (the ruble weakened 12% y/y and 2% m/m).
The retail portfolio was up 13.2% y/y to RUB19,065bn and 1.9% m/m, with mortgage loans remaining the key driver, as the state subsidised programme offers a good opportunity to invest in real estate, while banks also cut normal interest rates (along with the move in the key rate).
Corporate loans grew 6.2% y/y to RUB37,321bn and 1.0% m/m, with the RUB-denominated portfolio up 7.4% y/y and 1.0% m/m.
Asset quality remained stable, but a slight increase in provisions (12bp m/m) to 8.4% kept the coverage ratio at 145%.
95 RUSSIA Country Report October 2020 www.intellinews.com
