Page 63 - RUSRptOct18

8.1.3 Deposits
Retail deposits and corporate accounts grew 10.4% y/y and 7.7% y/y, respectively . Excluding the FX effect, the performances were more modest: 7.1% y/y and 2.1% y/y. Meanwhile, the m/m increase in customer accounts was driven by the FX factor. In the retail segment, the CBR notes a change in behaviour from saving to consumption, which might keep retail deposit growth muted. CBR funds at banks decreased 6.4% MoM, but were up 34.8% y/y, accounting for 3.5% of total liabilities.
Retail deposit rate of top 10 banks comprised 6.56% at end-August , according to the CBR the level last seen in March this year. The biggest lenders hiked deposit rates with max rate at Sberbank and VTB is 6.7%, 7.4% at Alfa-bank, 7.8% at RSHB. Sberbank’s CFO at the recent call on the results flagged the rates no longer are expected to decline with 25bp increase in the CBR rate expected till year end. This will increase the cost of funds, pressuring the NIMs near-term.
FX-adjusted customer funding (excluding deposits from state entities) decreased RUB246bn (0.5%), which was a result of a RUB195bn (0.7%) inflow of retail deposits and a RUB441bn (1.8%) outflow of corporate funding. The latter mainly contracted in state banks, namely in Sberbank (RUB138bn, 2.1%, partial reversal of a RUB309bn inflow in June), VTB group (RUB80bn, 1.8%) and Gazprombank (RUB96bn, 3.1%). Rusag also reported a RUB211bn (19%) decrease in corporate accounts, which partially reflects a $1.3bn Eurobond repayment (Eurobonds are accounted as customer deposits in Russian GAAP). Liquidity at all four banks remains comfortable, with highly liquid assets and unpledged corporate bonds covering customer accounts by more than 20%.
Retail deposits grew more or less evenly across the sector with only a few spikes, such as in Citibank (RUB58bn, 44% due to few lumpy accounts) and Credit Bank of Moscow (RUB35bn, 11% due to acquisition of customer accounts from failed Bank Sovetskiy).
63 RUSSIA Country Report October 2018 www.intellinews.com