Page 82 - RusRPTDec21

Mortgages also accelerated in October according to preliminary data, with growth of 2.3% m/m (adjusted for securitization carried out by two large banks in total by RUB50bn mortgage loans, excluding which the growth was 1.9%), after 2.1% in September and 1.8% in August.
At the same time, the growth is mainly due to market mortgages payments under each of the main state programs – “Family” and “Preferential” (at 7%) -- that remain at the level of RUB40bn.
The growth of consumer lending in October, on the contrary, significantly slowed according to preliminary data to 1.4% from 1.7% in September, which most likely reflects a gradual rise in the cost of loans against the background of an increase in the key rate, as well as an increase in the previously introduced macronutrients; from 1 July 2021 they have been increased to pre-pandemic levels, and from October 1, 2021, they were additionally tightened on high-margin loans (LOI 25%) and loans to borrowers with a high debt burden (LOI 50%).
Banks' loan portfolio continues to grow strongly in Russia. The banks' corporate loan portfolio grew by almost 10% last year and has continued to grow strongly this year.
In September, the loan stock grew rapidly, especially due to loans related to infrastructure projects in the oil and gas sector. At the end of September, the corporate loan portfolio was 11% higher than a year earlier and about half of the corporate loan portfolio is more than three-year loans.
In recent years, just over a fifth of corporate loans have been for less than a year, but during the pandemic, the share of these short-term loans in the loan portfolio has grown to more than 25%.
The growth rate of loans to households has been clearly faster this year than last year, especially due to strong growth in consumer credit.
Capital requirements for consumer credit were tightened in July, but this has not significantly slowed the growth of the loan portfolio. In September, the consumer loan portfolio was 21% higher than a year earlier.
Growth in mortgage lending has also remained strong this year, although interest rate subsidies on loans for the purchase of new homes were cut slightly in June.
The share of non-performing loans in the loan stock has declined slightly in January-September. The majority of household loans have fixed interest rates, so the rise in interest rates does not directly affect the cost of managing loans.
The mortgage portfolio of Russian banks continued surging, uninterrupted by the scale-down of the subsidised mortgage programme. In September it advanced another 2.2% MoM (highest increase in three months), while non-mortgage RUB retail loans were up by 1.9% MoM, The YoY figures for both the mortgage and non-mortgage retail portfolios remain high, at 26.9%
82 RUSSIA Country Report December 2021 www.intellinews.com