Page 70 - RusRPTDec19

bank and greater pressure on the capital. Subject to the final implementation terms, this initiative could lower the availability of mortgages via higher rates and tighter issuing requirements. Of late, mortgages have become an important source of sales for developers and across the listed universe represented 34-66% of volumes in 3Q19. According to the October data, the blended mortgage rate has declined 48bp YTD to a record low of 9.4% and has lately been offsetting the overall market cooling. The key rate going down from 6.5% at present to 6% by YE20F, implying a blended mortgage rate in the range of 7.5-8.0%. A 50bp lower mortgage rate increases the pool of eligible mortgage takers 10% across the mass market housing segment.
CBR Head Nabiullina suggests tightening secured lending regulations.
Kommersant reported. The share of customers with a secured product and another loan reached 46% from 39% in 2015, thus, it is necessary to tighten in advance. The CBR will discuss potential measures (increasing RWs depending on the PTI level) with banks in December. To remind, stricter regulation on mortgage lending was already implemented, with higher RWs imposed on mortgages with a small down payment.
8.1.6 ​Sberbank news
Sberbank’s 10M19 RAS results show a mixed month, but firm earnings.
NIM remained stable at 5.6% in October, yet only 11bp decline y/y. NII remains in a growing mode with +3% m/m and +5% y/y, supported by expanding loan portfolio.
Corporate lending issuance continued its growth with record since 2018 volumes of RUB1.4tn in October, corporate loans grew by 1.1% in real terms. Retail loans growth showed slight deceleration with +1.5% m/m after +1.7% m/m in September due to slowdown of consumer, but stronger mortgages.
70​ RUSSIA Country Report​ December 2019 ​ ​www.intellinews.com