Page 51 - RusRPTJune18

funds suggests further support for the banking sector as part of the sanitisation process, which implies further volatility at the bottom line amid CoR.
8.1.1 Deposits
8.1.2 Banks specific issues
The yield of the most profitable deposits of a number of the largest banks fell to a modern historical low in May . The average arithmetic value of the maximum interest rates of deposits in rubles (excluding combined products) of ten Russian banks with the largest portfolios of household deposits fell to 6.32% by May 20, according to Central Bank of Russia (CBR). This is another historical minimum. In the first ten days of May, the rate of top-10 banks was 6.37%.
Russia's second-largest bank VTB Bank cut car loans rates for foreign car models , continuing the policy of cutting interest rates on car loans and car leases. After cutting interest rates for general models in February and March VTB cut the cost of taking out loans for purchasing new models of Jaguar, Land Rover, Suzuki, Volvo, and Lifan. In the first quarter of 2018 the car loan portfolio of the bank rose to RUB100bn, expanding by 18% year-on-year of RUB14.7bn. Overall, car loans issues in the first quarter of 2017 jumped by 31% y/y to RUB115bn, with a total of 0.164mn loans granted. This means that the car loans is growing faster than the overall new car market. At the same time, the situation with overdue loans is "substantially better" in the car loan segment than in the unsecured consumer loans, industry experts surveyed by Vedomosti daily on May 8 argue.
Investment life insurance (ILI) with an accrued savings component yielded 6%-9% return on average in 2017, the first ever data on the segment released by the Central Bank of Russia (CBR) reveals. Thus the instrument is on par or even more profitable than the banking deposit, which
51 RUSSIA Country Report June 2018 www.intellinews.com