Page 61 - RusRPTDec18

8.1.1 Earnings
In September the profits of the Russian bank sector over the first nine months of 2018 reached RUB 1.1 trillion, up 58% y/y due to the creation of significant provisions by banks under sanitisation in September 2017. In m/m terms the profits of the bank sector were just under RUB200bn in September -- the second best month this year after March (RUB235bn).
8.1.2 Loans
Credit portfolio of retail loans increased by 16.7% in the first nine months of this year y/y, according to the CBR -- twice as much as in January- September 2017, and the first double-digit growth rates over the past four years. The Central Bank concerned about the appearance of a consumer credit bubble has tried to cool the overheated market, and in 2014 consumer loan growth slowed to 11.5% after 29.6% and 21.5% in January - September in 2012 and 2013 respectively. The market has changed a lot since then: the ruble has collapsed, interest rates soared, and the banks tightened lending conditions, even refusing to accept walk-in clients from the street any more. Today the annual growth rate of debt on unsecured loans remains significantly
61 RUSSIA Country Report December 2018 www.intellinews.com