Page 79 - RusRPTJun20

8.1.3​ Deposits
A positive moment in April was the growth of retail deposits by RUB371bn (up 1.2%) ​after the outflow in March (-RUB315bn, or -1.0%).
However, funds of legal entities, by contrast, decreased by RUB589bn. (1.9%), mainly due to the expiration of contractual terms of deposits of large customers of individual banks, following a 2.1% increase in March.
But at the same time, there was a noticeable influx of liquidity through the budget channel as the government started to respond to the coronacrisis.
8.1.7 ​Banks specific issues
According to DOM.RF, the value of issued mortgages increased 22% y/y to RUB760bn in 1Q20. ​The real estate sector saw an impressive spike in the demand in March that came 20-30% ahead of the companies’ plans, as clients rushed for housing in times of local currency volatility and uncertainties associated with mortgage rates. As a result, residential prices have added a blended 10% YTD. The environment also pushed people to conclude approved mortgages and conduct a purchase. The elevated demand took a certain portion of the April deals, in our view, while lockdowns cause operational breaks at sales offices, pushing transactions online. Thus, demand is under pressure in April, with leading indicators and volumes down 25-50% across listed developers. We note the sizable sector uncertainties that largely depend on the timing of social distancing, government support initiatives and consumer spending conditions, while the prospects for the coming several quarters are vague.
79​ RUSSIA Country Report​ June 2020 ​ ​www.intellinews.com