Page 93 - RusRPTFeb24

8.1.4 NPLs
In November, the share of non-performing loans continued to decrease in almost all lending segments. In the corporate portfolio, it decreased from 5.4% to 5.1%, in unsecured consumer loans from 7.9% to 7.8%, and remained at 0.6% in the mortgage segment.
Partially, the improvement in indicators is linked to the growth of the loan portfolio (the denominator), but in the consumer lending segment, it's also due to the tightening of macroprudential regulations, and in the corporate segment, it's related to the resolution of significant problem debt.
Quality indicators of floating-rate corporate loans still remain high, despite the rise in the key rate. As of December 1, 2023, the delinquency rate was only 1.5%, partly attributed to the active growth of the loan portfolio.
As of the beginning of December, problem corporate loans were covered by individual reserves at 78% and collective reserves at 126% (78% and 124% at the beginning of November), while retail loans were covered at 92% and 138%, respectively (92% and 136% at the beginning of November).
8.1.5 Liquidity, NIMs & CARs
LIQUIDITY: The reserve of ruble liquid assets (comprising cash, claims on the Bank of Russia, and unpledged market collateral) increased by 1.9 trillion rubles in December. In particular, balances at the Bank of Russia grew by 1.4 trillion rubles due to a significant inflow of customer funds. Unpledged collateral increased by 0.3 trillion rubles as a result of releasing collateral after the closure of repo transactions with the Federal Treasury.
The total volume of ruble liquid assets amounted to approximately 18.7 trillion rubles. The coverage level of funds from all clients increased moderately by 0.8 percentage points (20.7%, compared to 19.9% in November). The coverage level of funds from individuals increased to 45% from 44%.
In light of the growth in liquid assets, the proportion of banks (by assets) with coverage of client funds below 20% decreased slightly (from approximately 70% to 66%). The volume of liquid assets required to increase coverage to 20% also decreased slightly to 4.2 trillion rubles from 4.3 trillion rubles. These banks can secure most of the needed volume by pledging non-market assets.
The reserve of foreign currency liquidity has decreased significantly, from 48.9bn US dollars to 44.7bn US dollars, mainly due to reduced balances in accounts held by non-resident banks, as a result of the increase in foreign currency lending and the reduction in foreign currency customer funds.
The coverage of client funds has also slightly decreased, from approximately 52% to around 49%, as well as the coverage of foreign currency obligations, from 27% to 25%.
93 RUSSIA Country Report February 2024 www.intellinews.com