Page 76 - RusRPTDec23

8.1.4 NPLs
In September, amidst active loan issuance, the share of problem loans slightly decreased in almost all lending segments: in the corporate portfolio, it went down from 5.8% to 5.6%, in unsecured consumer lending from 8.2% to 8.1%, while in the mortgage segment, it remained at 0.6%.
Lending standards are still relatively low, although there have been some improvements. In unsecured consumer lending, the share of risky loans with a PDN (Payment Default Notice) >80% decreased from 27% in the second quarter of 2023 to 25% in the third quarter of 2023. The proportion of mortgages with a down payment <20% in the DD (Depositary Deposit) segment decreased from 63% in the second quarter of 2023 to 59% in the third quarter of 2023 (remaining at 44% in the non-DD segment).
In September, banks restructured loans for corporate borrowers amounting to 663 billion rubles, which is higher than the average level since the beginning of the year, which was 537 billion rubles. However, a significant portion of these restructurings is not related to deteriorating financial conditions of companies and does not pose significant risks. More than 70% of the total volume of restructurings was accounted for by oil and gas, construction, trade, and industrial companies.
As of the beginning of October, problem corporate loans were covered by individual reserves at 77%, and by collective reserves at 123% (78% and 124% at the beginning of September), while retail loans were covered at 91% and 134%, respectively (91% and 133% at the beginning of September).
76 RUSSIA Country Report December 2023 www.intellinews.com