Page 89 - RusRPTSept21

The sector's balance sheet capital grew by RUB183bn, which is lower than the earned profit due to the payment of dividends (in total, about RUB60bn) by individual banks. The aggregate capital adequacy ratio (N1.0) in June increased by 0.4%age points to 12.6%. The growth was ensured by the profit for June (RUB204bn) and the dissolution of macroprudential allowances (in the amount of about RUB800bn. Capital stock also recovered to RUB6.0 trillion (about 10% of the total loan portfolio, but it should be borne in mind that it is unevenly distributed among banks).
8.1.7 Banks specific issues
Annual growth of SME loan portfolio in June reaches its highest level since early 2021 In June 2021, the portfolio of bank loans to small and medium-sized enterprises (SMEs) expanded by RUB404bn to total RUB6.8 trillion as of 1 July 2021. The annual growth rate of the loan portfolio hit its highest level since January 2021, exceeding 32%. Loans issued to SMEs amounted to 1 trillion . Average weighted interest rates on ruble loans equalled 8.36% per annum on loans extended for up to one year and 8.52% per annum — on long-term loans.
The board of the Central Bank of Russia (CBR) resolved to increase risk-weight add-ons for unsecured consumer loans in accordance with the rate of full cost of credit (PSK) and the customer’s payment-to-income level (PTI), effective 1 October, 2021. As reported by bne IntelliNews, CBR officials have previously voiced concerns that a consumer credit bubble was emerging. The CBR now commented that as higher macroeconomic activity has led to stronger unsecured loan growth (+2.2% month on month in May and +2.0% m/m in June), this was accompanied by growth in customer’s PTI, with the average level at 61.1% in 2Q21, and longer terms of loans. BCS Global Markets on August 2 reminded that the CBR paused the tightening in the consumer loans segment in 2020 and estimated that risk weights increased mostly in the riskiest segment of PSK 30-35% and PTI 70%+.
Russian banks have issued RUB437bn worth of mortgages ($6bn) in July 2021, dropping by 20% and posting the weakest month this year, Vedomosti daily reported citing the estimates of Frank RG.
As reported by bne IntelliNews, the general subsidised 6.5% rate mortgage programme was introduced in April 2020 and supported the housing market with RUB1 trillion ($13.34bn) of mortgages issued in 2020, or over 80% of the primary market and 23% of all new mortgages.
However, the authorities were becoming increasingly concerned that the programme was heating up housing market prices and called its
89 RUSSIA Country Report September 2021 www.intellinews.com