Banks’ retail portfolios show sustained improvement between January and May

In the five months of 2018, the banking sector's loans to the economy grew 3.2%¹, which includes 1.5% growth in loans to non-financial organisations and 7.3% growth in household loans. For details of banking sector trends, please refer to the informational and analytical publication ‘Russian Banking Sector Developments in May 2018’ on the Bank of Russia website.

As their risk management systems improved, banks in the January to May 2018 period saw a sustained improvement in the quality of their retail portfolios. Overdue loans declined in absolute terms, as did the share of such loans in banks’ retail portfolio, which moved close to the 2015 level.

Household deposits were up 1.4% in the five months.

In the January to May 2018 period, the banking sector posted a total profit of 527 billion rubles. This financial outcome was affected by the performance of banks under financial resolution involving the Banking Sector Consolidation Fund. Banking sector profit exclusive of these banks in the five months totalled 717 billion rubles.

¹ Relative banking sector indicators are impacted by ruble exchange rate movements, as well as by licence revocations and cancellations (excluding licence cancellations following reorganisations). For this reason, to provide a more accurate presentation of actual key banking sector performance indicators, the data excludes currency effects for credit institutions in operation as of the latest reporting date (including previously reorganised banks).