Page 95 - RusRPTSept22

some recovery, but it primarily stemmed from the corporate sector.
As such, the corporate loan portfolio increased by Rb600bn in July (v Rb33bn in June) supported by a preferential lending program. However, the total corporate portfolio remained weak and accounted for about a half of last year’s figure.
According to preliminary data, mortgage loans accelerated to 1.3 m/m in July (v 0.7% m/m in June), but this dynamics is still below an average 2% m/m growth in 2021. Non-mortgage retail loans increased 0.7% m/m in July.
In July retail deposit growth decelerated in July – some growth stemmed from the ruble-denominated segment, where funding grew by Rb313bn or 0.7% m/m, partially offsetting outflows of forex retail deposits (Rb192bn).
With the invasion of Ukraine in February 2022, fears of new sanctions and increased general censorship have caused a
scarcity in data on banking sector activity.
The CBR’s monthly releases currently only cover a few key indicators for the sector as a whole. The available data suggest that Russia has avoided a widespread financial crisis and that conditions in the banking sector are stabilising.
The impacts of war, sanctions, a y/yoing key rate and general economic uncertainty reduced bank lending activity in the March-May period. The stock of corporate loans stopped shrinking in June, thanks largely to subsidy programmes for large, systemically important firms. The slight growth in the housing loan market has helped reboot household lending in June.
Rates on new loans have fallen because of the CBR’s rate-cutting, which began in April, as well as government subsidy programmes. The stabilisation of financial markets has also made conditions more conducive for borrowers.
A June survey on bank lending found that terms for household loans had relaxed considerably from March. There was still no strong sign of a revival in credit demand, however, and household savings appear to have risen further in May and June. Household savings deposits were up by 6% y/y in June.
Although the CBR no longer releases information on bank financial performance, observers say that the first six months of this year were extremely challenging for banks focused on serving households. Corporate lending, in contrast, relies more on variable-rate loans that help banks protect their margins.
95 RUSSIA Country Report September 2022 www.intellinews.com