Page 74 - RusRPTMar19

8.1.4 NPLs
Non-performing loans (NLPs) situation has also improved in 2018 as banks have profit again to deal with problem loans. The share of overdue loans notably improved both m/m and y/y, VTBC reports, which can be attributed to repayments and write-offs.
As of the end of 2018, the share of overdue amounts in the corporate portfolio was 6.3% and in retail 5.1%. The share of total provisions was also down m/m and y/y, to 8.3%, still helping the coverage ratio to improve to 177% from 171% a year ago.
The share of overdue loans in the corporate portfolio increased to 7.8% in January from 6.3% in December. The CBR attributed this sharp increase to changes in accounting methodologies, particularly in different treatment of overdue receivables. The retail overdue ratio increased to 5.4% in January from 5.1% in December.
8.1.5 NIMs & CARs
8.1.7 Banks specific issues
Excluding the FX factor, both segments grew 5.5% y/y. CBR funds declined 14.5% m/m, yet were up 29.3% y/y.
Putin asked the govt and CBR to consider measures to lower mortgage rates to 8% and below by beg-2020. The CBR hikes last year and some tightening of regulation caused rates to grow – current rate around 10%. Mortgage rates reached a historic low at 9.4% in fall 2018, but have since risen again. In December, banks issued mortgages at an average rate of
74 RUSSIA Country Report March 2019 www.intellinews.com