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8.1.4 NPLs
NPLs: In August, amid active lending growth, the share of non-performing loans in the corporate portfolio slightly decreased to 5.8% from 6.0%.
In July, loans worth 396 billion rubles were restructured, which is below the average level of restructuring in 2023 (around 500 billion rubles). More than 70% of these restructured loans were granted to borrowers in the real estate sector (primarily developers), mining and metallurgy, and industrial sectors. Banks are helping these borrowers adjust their debt service in the short term (for example, postponing some payments to a later date) to prevent problems in the longer term. Further provisioning may be required for these loans in the future, but this effect will be spread over time.
In the mortgage portfolio, the share of non-performing loans continues to remain at historically low levels – 0.6%. In the unsecured consumer lending segment, the share of non-performing loans slightly decreased to 8.2% from 8.4%. To mitigate the risk of overheating in the market, the Central Bank of Russia has tightened loan-to-value ratios and increased macro-add-ons.
8.1.5 Liquidity, bonds, govt funds
LIQUIDITY: The volume of ruble liquidity experienced a substantial increase of 4.2%, equivalent to 684 billion rubles. This rise is notably attributed to a significant inflow of client funds, including those in escrow and brokerage accounts (refer to sections 7 and 8 for details).
91 RUSSIA Country Report October 2023 www.intellinews.com