Page 90 - RusRPTOct20
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8.0 Financial & capital markets 8.1 Bank sector overview
The health of the bank sector improved considerably over the summer thanks to strong loan growth – strongly driven by state subsided mortgages - amid lower interest rates and the gradual economic recovery.
Profit for 8mo20 totalled RUB1.2bn (down 14.9% y/y) with the August profit of RUB178bn being up 1.3% y/y. The banking sector has made back almost all the ground it lost in the first half of the year by August.
The partial release of prudential requirements in consumer lending might further support lending growth for the rest of the year.
The loan growth dynamics came in line with the CBR’s expectations for FY20: it sees the corporate loan portfolio growth at up to 9% y/y and retail at 9% y/y, driven by the more than 10% y/y increase in mortgages.
Meanwhile, retail deposit growth is muted, despite people being in saving mode, due to the decline in incomes and the continuing inflow of funds into capital markets.
90 RUSSIA Country Report October 2020 www.intellinews.com
