Retail lending growth speeds up in March

The retail loan portfolio increased by 2.2% in March (vs 1.4% in February). This was conditioned on an increase in both mortgage and unsecured lending amid a revival in consumer activity. The March growth of corporate lending (+0.5%), in contrast, was slightly lower than a month earlier (+0.8%).

Balances in banks customers' accounts contracted moderately: legal entities by 0.6%, households by 0.3%, with the trend of funds overflowing from deposits to current accounts still in place. A considerable inflow of funds through the fiscal channel was observed, which was probably due to the temporary placement of tax revenues, as well as the OFZ issue.

The banking sector posted net profit of 205 billion rubles in March (+22% vs February). The cancellation of easing in terms of large corporate loan provisioning did not produce a considerable effect.

More details are available in the information and analytical material Russian Banking Sector Developments in March 2021.