Corporate and retail lending rebounds in July
Banking sector assets grew 1.2% in July, chiefly on the back of continued growth in corporate and retail lending (aggregate growth on the order of +1.7%), reports the July issue of Russian Banking Sector Developments, an information and analytical commentary.
The corporate loan portfolio posted an expansion (+1.6%) well above its average monthly growth in 2019. However, behind this growth were just several major borrowers and ongoing state lending support programmes.
A certain expansion was also seen in the retail segment (+1.7%). Mortgage lending remains its key growth diver, with a substantial share of the concessional lending programme with 6.5% interest.
Household deposits rose marginally ((+0.3%), while corporate deposits declined (-0.2%); yet, this contraction was set off by incoming budget funds.
The banking sector’s net profit totalled 131 billion rubles in July, which is above the past year’s monthly average and almost twice as much as in June. This profit owes its existence primarily to the results of several major banks having undertaken foreign currency revaluations, as well as to a rise in interest and trade revenue against the backdrop of a rebound in economic activity.
