Page 109 - RusRPTJul24

The continued expansion in the corporate loan portfolio indicates sustained investment activity and economic resilience amidst challenging conditions.
Consumer lending in Russia grew by almost 8% year-to-date, which is 1.5 times higher than in the same period last year. Meanwhile, in May growth of consumer lending accelerated to 2%, according to preliminary estimates, the Bank of Russia said.
"According to preliminary figures, growth rates of consumer lending accelerated to 2% from 1.8% in April, whereas since the beginning of the year growth has reached as high as almost 8%, which is 1.5 times higher than in the same period last year," the regulator said. "Overall the considerable growth of lending in recent months is connected with the growth of personal income, due to which high consumer activity persists," according to files released by the Central Bank.
The portfolio of consumer loans totals 14.7 trillion rubles ($165bn). That said, the total amount of the portfolio of loans to private individuals (including mortgage) has reached 36.07 trillion rubles (up by 2% in May).
Earlier, the regulator upgraded its outlook on growth of the portfolio of consumer loans in Russian banks in 2024 from 3-8% to 7-12%. Concurrently, the Central Bank downgraded its outlook on growth of consumer lending for 2025 from 6-11% to 4-9%.
Mortgage Growth in Russia Accelerates in May
Mortgage lending in Russia saw a significant rise of 1.7% in May, up from 1.4% in April, according to preliminary data.
Increase in Mortgage Issuance
Mortgage issuance increased to 546 billion rubles in May from 466 billion rubles in April. This growth was largely driven by government support programmes. Issuances under the "Preferential Mortgage" programme surged by 20% to 132 billion rubles, compared to 110 billion rubles in April. The "Family Mortgage" programme saw a 24% increase, reaching approximately 212 billion rubles from 171 billion rubles. Borrowers aimed to secure loans before the anticipated changes to government programmes, especially ahead of the end of the widespread "Preferential Mortgage" scheme on July 1, 2024.
Government-Supported Mortgages
Overall, government-supported mortgage issuance grew by 21%, totalling 422 billion rubles from 350 billion rubles in April. These government-backed loans continued to account for over 75% of total mortgage issuance, with more than 90% of loans in the newly constructed housing segment (Dolevoye Uchastiye - DDU).
109 RUSSIA Country Report July 2024 www.intellinews.com