Page 68 - RusRPTSept19

8.1.2 Loans
Retail lending showed further signs of deceleration in July with 1.2% m/m growth (22% y/y in 7m19), the lowest rate since February, and down from 1.4% in June, 1.6% in May, 2.0% in April and 1.7% in March, which is good to see.
Corporate loan growth was still sluggish, flat m/m, up just 3% YTD and up 6% y/y in FX-adjusted terms. The sector's earnings reached R1,178bn in 7m19, up 52% y/y. However, according to the CBR, this increase was partly driven by lower provisioning charges due to the implementation of IFRS 9.
The sector loan book grew 0.4% m/m in nominal terms in July (+11% y/y and +4% YTD), while in FX-adjusted terms loan growth was also 0.4% m/m (+11% y/y and +5% YTD excluding banks whose licenses have been revoked).
Retail loan growth was 1.2% m/m in July (+22% y/y and +11% YTD). Corporate lending increased by 0.1% m/m in nominal terms and was flat in FX- adjusted terms (for FX-adjusted y/y and YTD growth of 6% and 3%, respectively).
Every second family in Russia has an outstanding loan, according to to the All-Russian Center for the Study of Public Opinion (VTsIOM). More than half of the respondents (51%) said that they or relatives living with them have a debt with a banks. 48% of respondents do not have loans, 1% found it difficult to answer. At the same time, most Russians, according to a survey, do not plan to take loans in the near future (84%). 5% of respondents want to apply to the bank for a mortgage, 4% want to take a loan for home repair, and 3% want a loan for a car.
Every fifth Russian pays 30%-50% of total family income as loan repayments The state owned pollster, the Russian Public Opinion Research Centre (VTsIOM) found that every fifth Russian (21%) makes loan payments of the total family income to the amount of 30%-50% on a monthly basis, the centre said in a report published on August 15. According to the survey, 31% of respondents, mainly aged 18 to 24 (36%) and 25 to 34 years old (27%), allocate from 10% to 20% of family income to repay loans. Another 16% of respondents spend from 21% to 30% of the budget on monthly payments, reports TASS. The majority of respondents (66%) who have a loan noted that over the past year they did not have trouble with repayments. Most often, these are Russians aged 35 to 44 years (69%) and 45 to 59 years (71%). Another 33% of Russians surveyed, mainly aged 18-24, had difficulty repaying loans. In general, more than half of the respondents (60%) believe that they will be able to repay the existing loan (63% of respondents aged 35 to 44 years and 65% of Russians aged 45 to 59 years, as well as 68% of residents of cities with a population of 500,000-900,000 and less than 100,000). Another 38% of respondents, on the contrary, noted that repayment of a loan would cause them certain difficulties (41% of those between 18 and 24 years, 25 and 34 years and more than 60 years old, as well as 43% of residents ofmn-plus cities, and 47% of rural residents).
68 RUSSIA Country Report September 2019 www.intellinews.com