Commentary on banking sector performance in May and on 1–9 June (Interfax)
In June, Russian banks continued the upward trend in retail lending that had emerged in May. Specifically, from 1 through 9 June, the amount of loans to individuals increased by 0.3%, which is higher than over the same period in April and May, according to the Bank of Russia’s up-to-date information.
Over the first nine days of June, banks’ claims on businesses went down by 0.1%, in both foreign currency and rubles.
Funding recorded a noticeable rise. Companies’ deposits expanded by 2%, mostly in rubles. Households’ funds in accounts also increased (0.5%), with balances in rubles and foreign currency both rising.
The Bank of Russia has also provided more precise data on lending in May. The amount of corporate loans remained almost unchanged. The preliminary estimate given by the Bank of Russia in its Financial Pulse review on 5 June suggested corporate lending growth of 0.4%. This discrepancy with the preliminary estimate is purely technical: as was explained by the Bank of Russia, claims also comprise unencumbered corporate debt securities. In April, corporate lending increased by 1.4%; and in March its growth rate was record high, reaching 2.6%.
The retail loan portfolio expanded by 0.2% in May, which is better than in April (-0.7%), but is still beneath its monthly averages in 2019 and 2020 Q1 (approximately 1.4%).
The amount of companies’ funds increased negligibly in May — by 0.3% (vs −1.9% in April).
According to the Bank of Russia’s data, households’ deposits slightly shrank (-0.1%), which is typical of May when expenses are rising because of the holidays, while incomes are going down due to the reduced number of work days, especially among individuals paid by the piece.
Interfax, 15 June 2020