Page 108 - RusRPTApr24

8.1.4 NPLs
In corporate lending, the proportion of problematic loans has slightly decreased (by 0.1 percentage points) to 5.2% in February. As of the beginning of March 2024, such loans were covered by individual reserves at 76% and by collective reserves at 122% (compared to 76% and 121% respectively at the beginning of February).
In retail lending, the share of problematic loans remained stable at 4.3%.
However, in unsecured consumer lending, the proportion of problematic loans has marginally decreased to 7.8% from 7.9%, while in mortgages, it remained at 0.6% (according to preliminary data). As of the beginning of March 2024, problematic retail loans were covered by individual reserves at 91% and by collective reserves at 138% (compared to 91% and 138% respectively at the beginning of February).
These modest improvements in credit quality across both corporate and retail lending sectors indicate a continued focus on risk management and resilience within the banking industry. While challenges persist, particularly in unsecured consumer lending, the maintenance of robust reserve coverage underscores efforts to mitigate potential credit risks and ensure the stability of lending portfolios.
108 RUSSIA Country Report April 2024 www.intellinews.com