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bps y/y, and also 3.8% in July, up 40 bps y/y. Fee income was up 22% y/y in 7m20 and 43% higher y/y in July.
Growth. The gross loan portfolio rose 9.1% YTD and 4.7% in July. In FX-adjusted terms, it was up 4.3% and 2.9%, respectively. Retail loans grew by 1.4% in July and 8.2% in 7m20 (both FX-adjusted), primarily driven by mortgage lending (up 12.8% YTD and 1.8% m/m in July). In FX-adjusted terms, corporate loans rose 3.6% m/m and 2.7% YTD. Retail deposits rose 0.2% in July (+0.2% YTD) in FX-adjusted terms, while corporate deposits increased by 0.6% m/m and 7.8% YTD. The LDR was at 96% (versus 94% in June).
Asset quality. The cost of risk was 2.2% in 7m20 and 4.9% in July, up from 0.8% and 0.5% y/y, respectively. The NPL ratio was down 10 bps m/m at 5.0%. NPL coverage grew to 136.5% from 131.7% in June.
Costs. Costs were up 4% y/y in 7m20 and 10% y/y in July. The cost-to-income ratio was 30% in July and 42% in 7m20.
VTB Online launches transfers to cards in more than 100 countries. VTB Online users now have the opportunity to transfer money to more than 100 countries on Visa, Mastercard and UnionPay cards. Money is credited to the account instantly, with the commission up to 1.5% of the amount. Now VTB customers can make online transfers to Visa cards in 64 countries, including the European Union, the CIS and Southeast Asia. Transfers to Mastercard cards are available for 103 countries. The maximum amount per transfer is RUB100,000 ($1,300). To transfer money to a foreign card in the VTB Online mobile app, customers select the "Payments" tab in the lower menu, open the "To other countries" section, and select "transfer from card to card". In online banking, this operation can be found in the top menu in the "Transfers" tab. Since the launch of the international card-to-card transfer service in 20 countries, customers have made more than 10 thousand transactions, with the amount of funds transferred exceeding 135mn rubles ($1.8m). VTB Online users made the greatest number of transfers to Kazakhstan, Belarus, and Georgia.
Russian state-controlled "defence bank" Promsvyazbank (PSB) suffered the worst losses in the sector amid the coronavirus (COVID-19) crisis, RBC business portal reports on September 14 citing the calculations of BKF analysts. Reportedly, based on calculations of available data, the PSB posted a loss of RUB8.1bn ($108mn) in 2Q20, followed by Mosobbank (Moscow Regional Bank) with RUB7.6bn, and Alfa Bank with RUB50.9bn loss. Previously, as of end of 1Q20, PSB reported profit of RUB19.4bn. The loss of PSB could be attributed to RUB4bn transfers to losses for bad loans, as well as RUB1.2bn advance in bad loans. Even though 77% of bank's portfolio are large borrowers, the SMEs portfolio amid the coronavirus could have caused a
102 RUSSIA Country Report October 2020 www.intellinews.com
