Banks ramp up retail lending

In the first eight months of 2017, banks’ retail lending portfolios were up 7.0%¹ to a total of 11.5 trillion rubles. The indicator has stayed in positive territory since February this year, according to the information and analytical paper titled ‘Development of the Russian Banking Sector in August 2017’, which the Bank of Russia posted today on its website.

The strong performance of banks over the eight months of 2017 is evidenced by growth across all key indicators. In this way, banking sector assets were up 4.5% in the first half of 2017. Loans to the economy rose 3.5% including a 2.3% growth in lending to non-financial institutions. Household deposits have also grown at a solid 5% since the start of the year.

Banking profits for the same eight months were in excess of 997 billion rubles and above the 2016 financial result (930 billion rubles).

¹ Relative banking sector indicators are impacted by ruble exchange movements, as well as licence terminations (excluding licence terminations following reorganisations) over the reporting period. Consequently, to enable a more accurate presentation of key banking sector performance indicators, the data strip out currency effects for credit institutions in operation as of the reporting date (including previously reorganised banks).