Page 101 - RusRPTJan23

8.1.3 Deposits
On the funding side, the volume of deposits is also falling in November.
The funds of legal entities decreased by RUB0.5 trillion in October, or -1.1% (in September there was an increase of 2.3%), mainly due to payments dividends and taxes by companies from the oil and gas industry.
At the same time, currency balances are expected to shrink (-$11.1bn, or -RUB639bn in ruble equivalent, -8.3%). Since the beginning of the year, foreign currency funds have decreased by almost by $28bn (-RUB1.7 trillion in equivalent, or ~20%), the CBR said.
There was also a spike in withdrawals from household accounts in September due to Russian President Vladimir Putin’s partial mobilisation that started on September 21 that saw somewhere between 300,000 and one million Russian men leave the country.
The outflow of household funds (excluding escrow accounts) slowed in October to RUB98bn rubles. (-0.3%) after RUB458bn ($7.5bn) was withdrawn in September.
The only good news the CBR had to report was an increase in term deposits in the first half November (tentatively ~RUB100bn) as Russians go back to high yielding bank deposits on the back of the CBR rate hikes this year.
The total funds of the population (without escrow) decreased by 1.6% (RUB0.5 trillion) in the first ten months of this year, but, the CBR said that taking into account the traditional inflow of deposits in December after the payment of premiums and advance social payments for January, “We can expect small increase for the whole year.” The slowdown in mortgage loans has also hit the growth of household funds in escrow accounts, which only grew by RUB60bn (+1.5%) after a RUB100bn (+2.6%) increase in September against the backdrop of declining sales in the primary market.
Funds of legal entities grew by a significant 1.7%, or RUB0.7 trillion (in October there was a reduction of 1.1%).
The balances on accounts grew mainly (RUB636 billion , or +1.9%) of oil and gas companies. Funds in foreign currency increased insignificantly $0.6 billion, or RUB38 billion in equivalent, +0.5%.
Public funds increased by RUB0.6 trillion (+7.9%), including due to a temporary surcharge to the severance tax, as well as dividends from Gazprom for the first half of 2022
101 RUSSIA Country Report January 2023 www.intellinews.com