Households’ time deposits resume growth in August
Growth in consumer lending accelerated in August to 2.2% from 1.7% in July, probably boosted by additional spending related to vacations and preparations for the new school year. This is reported in the information and analytical report Russian Banking Sector Development in August 2021.
Almost no deceleration in the growth of mortgage loans was reported as they expanded 1.8% notwithstanding a sizeable drop in the issuance of soft loans at 7% p.a. Corporate lending rose at a relatively weaker pace of 0.7%, which is normal after the unusual 1.5% spike in July.
A moderate inflow of funds to time deposits (+0.5%) was recorded, for the first time since early 2020 (except for the seasonal growth in December) as deposit rates went up. The outflow of household funds from current accounts (-0.5%) was partially offset by social payments to families with school-age children.
Corporate funds grew mostly due to placements in foreign currency by oil and gas majors and large smelters. Public funds shrank on the back of rising budget expenditures, including transfers of social payments to pensioners (credited to accounts in September).
The sector’s net profit was up to 244 billion rubles in August, from 229 billion rubles in July. Profit totalled 1.7 trillion rubles for the first eight months.