Households’ time deposits with banks continue to increase in September
Corporate lending growth sped up significantly (to 1.6%) in September as compared to the average monthly rate recorded at the beginning of the year (+0.9%), according to the information and analytical review Russian Banking Sector Development in September 2021.
As regards the retail segment, the growth of mortgage lending accelerated slightly from 1.8% in August to 2.1% in September, whereas the expansion of consumer lending slowed down from 2.2% to 1.7%.
Households increased their bank deposits by 0.8%, including time deposits — by 0.9%. This was driven by higher deposit rates, as well as additional social payments to pensioners. In September, the inflow of corporates’ funds remained significant (+1.8%), primarily in large commodity companies’ accounts.
The banking sector’s net profit totalled 196 billion rubles in September (return on capital — nearly 20% in annualised terms), which is almost 20% below the level in August. This reduction was caused by, among other things, a negative revaluation of fixed income debt securities.