Page 101 - RusRPTSept21

return on equity (ROE) from regular business rose to 28% (up from 20% in 1H 2020).
The retail net loan portfolio increased by 44% in 1H 2021 to RUB429bn, due to growth in the Halva portfolio, secured lending as well as the purchase of Vostochny Bank, whose retail portfolio amounted to RUB75bn as of 30 June 21. The corporate lending portfolio increased by 54% to RUB533bn.
The bond portfolio as a share of assets decreased from 39% as of 31 December 2020 to 30% as of 30 June 2021.
Retail customers’ current accounts and term deposits increased by 29% in 1H 2021 to RUB609bn, due partly to a RUB116bn contribution from Vostochny Bank. While funding from corporate customers grew by 27% from the beginning of the year to RUB644bn, mainly due to an inflow of corporate deposits (up 36% from 31 December 2020).
Net interest income amounted to RUB52bn, up 39% year-on-year. Net fee and commission income grew by 33% to RUB15bn. The cost-to-income (CTI) ratio increased by 2 p.p. from the beginning of the year to 43%, mainly due to an increase in marketing and advertising expenses related to the Halva card rebranding and the incorporation of Vostochny Bank.
In the retail business, over the last six months, all key retail business lines showed solid organic growth in assets and profits, the bank said. The bank’s net mortgage portfolio grew by 29% to RUB102bn, the net car loan portfolio grew by 13% to RUB118bn, and the net Halva card portfolio grew by 21% to RUB66bn.
Once all Vostochny Bank credit cards have been converted to Halva cards, the latter’s portfolio will increase to RUB120bn.
8.2 Central Bank policy rate
101 RUSSIA Country Report September 2021 www.intellinews.com
At its July meeting, the central bank raised the key interest rate by a full%age point and the rate is now 6.5%. The rate hike did not come as a surprise to the market, as consumer prices in Russia have risen sharply in recent months. In early July, annual inflation was 6.5%, well above the central bank's target of 4%. Inflation expectations have also risen sharply in recent months, with household inflation expectations peaking at almost five years in