Page 77 - RusRPTNov19

8.1.4 NPLs
8.1.7 Banks specific issues
The share of overdue loans in the retail portfolio fell to 4.7% in September from 4.8% in August. The corporate overdue ratio was flat at 8.0%.
The CBR has published its mortgage data for September where the blended mortgage rate declined 24bp m/m and 20bp YTD to 9.68%. Origination of new mortgages was RUB700bn in 3Q19, implying an 8% y/y correction vs. flattish trends in 1H19. The mortgage rate has followed the path of the key rate, moving closer to the record low 9.41% of September 2018. That time, the key rate was 7.5%, vs. 7.0% for September 2019. During October, the CBR cut the key rate a further 50bp to the current 6.5%, implying additional downside risk to the mortgage rate. New origination is cooling, in line with the broader real estate market. Demand was front-loaded prior to the implementation of the escrow accounts on July 1, and new mortgages surged 50% y/y in 2018, and were flattish in 1H19 from a high base.
The share of rubles in banks’ assets has climbed to post-crisis high.
Sanctions and the increased attractiveness of the ruble help Russian banks diversify their balance sheets.
The importance of the ruble in Russian banks’ foreign assets has hit its highest level since 2014, statistics from the Central Bank show.
A total of 13.4% of banks’ foreign assets were denominated in rubles at the end of the second quarter — the largest share since the third quarter of 2014 — according to figures released yesterday. Foreign assets include things like
77 RUSSIA Country Report November 2019 www.intellinews.o