Page 126 - RusRPTApr23

significant slowdown in the growth rate of retail lending occurs mainly due to a decrease in unsecured lending. Thus, the growth of unsecured lending in 2022 almost zeroed and amounted to +2.7% against 20.1% in 2021. In this aspect, the correlation with other statistics is also visible, in particular, with the retail trade turnover in 2022, which decreased by 6.7%.
Another component of retail lending, the mortgage portfolio, grew by 17% in 2022, which is a generally good result, but this is less than in the previous three years. It should be noted that the slowdown in mortgage growth rates in 2022 is associated with the dynamics in April-August, when the growth rate was very weak, including a two-month decline, which has not been observed since 2009. The weak result over this time frame is mainly due to the high interest rates since the start of the NVR and significant uncertainty. But gradually the growth rates returned to high values. In particular, mortgages in December were characterized by very good growth rates. The portfolio of issued housing loans, excluding securitization transactions, grew by 2.3% in December,In general, in 2022, preferential mortgages, as well as the practice of co-financing mortgage rates from developers, played a very important role in the positive dynamics of the mortgage portfolio. Loan products at almost zero interest (0.1%, and in some cases 0.01%) appeared massively on the Russian market. Regulators have expressed dissatisfaction with such rates, as it radically changes the landscape of the mortgage market, which potentially carries significant risks. After lengthy negotiations, developers and banks adjusted such programs, and in early 2023 the standard subsidized rates were set at 3-4%, which is still well below market and preferential programs. According to RIA Rating analysts, preferential and subsidized rates will continue to have a significant impact on the market. However, the growth rate of mortgages in the medium term will still decline somewhat, including against the background of expectations of a correction in real estate prices. According to RIA Rating, at the beginning of 2023, the growth rate of the mortgage portfolio will be quite high due to previously approved loans at rates in 2022, but in March, the growth may slow down and reach about 12-14% by the end of the year.
126 RUSSIA Country Report Russia April 2023 www.intellinews.com