Page 134 - RusRPTJun24

month after issuance rose from 0.4% for loans issued in July 2023 to 1.2% for those issued in January 2024.
To curb banks' appetite for high-interest lending, starting from July 1, 2024, risk weight add-ons for unsecured consumer loans with an FCC of 25-40% will be increased for all PTI categories.
8.1.5 Liquidity, NIMs & CARs
LIQUIDITY: Ruble liquid assets in the Russian banking sector, including cash, claims on the Bank of Russia, and unencumbered marketable collateral, increased by 0.7 trillion rubles (+3.2%) in April, reaching 21.3 trillion rubles. This growth was primarily driven by the expansion of the Lombard List, which added approximately 0.5 trillion rubles in marketable collateral, including securities issued in December 2023.
The coverage of all ruble-denominated client funds remained largely unchanged at 22.3%, compared to 22.5% in March, indicating an adequate level of liquidity coverage across the sector, though it varied among banks. The coverage of individual deposits stayed comfortable at 48%.
The proportion of banks (by assets) with liquidity coverage of client funds below 20% remained nearly stable at 61% (around 62% in March). However, the share of banks with total liquid assets and available non-marketable collateral below 20% of client funds slightly decreased but still represented a significant 12% (down from 14% as of April 1, 2024).
CAPITAL: The balance sheet capital of the Russian banking sector grew by 273 billion rubles (+1.8%) in April, which is less than the sector's net profit of 305 billion rubles for the same period. This discrepancy is mainly due to a negative revaluation of securities through other comprehensive income (-58 billion rubles) and dividend payments (22 billion rubles). Additionally, several banks were recapitalised by a total of 20 billion rubles, primarily through additional share issuances.
Preliminary data indicate that the total capital adequacy ratio (N1.0) remained stable at 12.1% in April, with a slight monthly decrease of 0.01 percentage points.
Regulatory capital increased by 1.5% in April, driven by monthly profits. Risk-weighted assets (RWAs) rose by 1.6%, due to the expansion of lending and an increase in macroprudential add-ons (+9% for the month), primarily related to consumer loans.
The capital buffer (above the regulatory requirements) remained largely unchanged in April, amounting to 7.6 trillion rubles.
BONDS: The volume of investments in debt securities by Russian banks decreased by 0.1 trillion rubles (-0.6%) in April, primarily due to a reduction in corporate bond investments, part of which were sold and part were redeemed.
134 RUSSIA Country Report June 2024 www.intellinews.com