Page 72 - RusRPTMar19

8.1.2 Loans
There was good news too on the lending front in 2018. While consumer loans have recovered well in the last two years, corporate borrowing has remained depressed as bankers preferred to go to the bond markets and remain pessimistic about Russia’s near term outlook. The presidential elections last March also depressed borrowing activity.
Corporate loans were up 10.5% y/y or 5.1% y/y if adjusted for the 20.6% ruble depreciation against the dollar, VTBC estimates. Retail loan growth momentum remained strong, and the portfolio grew 22.4% y/y, slightly decelerating m/m due to seasonal repayments.
Households contributed to growth in 2018 by taking out more loans.
Retail lending rose 22.4% last year after a 12.7% increase in 2017, central bank data showed.
Russia’s banking total loan book was flat m/m in January in nominal terms (+13% y/y), while in FX-adjusted terms loan growth was 1.0% m/m (+10.3% y/y and +10.9% y/y excluding banks whose licenses have been revoked).
Retail loan growth was 1.3% m/m in January (up 23.5% y/y excluding banks whose licenses have been revoked). The rate of retail loan growth accelerate in the second half of last year; as incomes stagnate Russian consumers seem to be borrowing more heavily to maintain their standard of living to the point where the CBR is starting to worry.
Corporate lending decreased 0.6% m/m in nominal terms but was up 0.8% m/m in FX-adjusted terms (for FX-adjusted y/y growth of 5.8%).
72 RUSSIA Country Report March 2019 www.intellinews.com