Household FX deposits decline in August as ruble deposits rise

In January-August, banking sector assets grew by 2.2%, notes the information and analytical report ‘Review of the Banking Sector of the Russian Federation in January-August 2019’.

In August, an acceleration began to show in corporate lending growth helped by ruble loans. The growth pace of retail lending also rose in August after a three-month slowdown.

The expansion of ruble lending was bolstered by appropriate dynamics of household deposits. In January-August 2019, their growth rate almost doubled year on year. Moreover, FX deposits in US dollar terms dropped in August for the first time since the year-start whereas ruble deposits continued to increase.

(Net) profit of the banking sector came in at 1.4 trillion rubles in January-August 2019 (0.9 trillion rubles in January-August 2018). Year-on-year growth of the financial result is largely technical in nature because credit institutions make adjustments required by IFRS 9.