Banking sector makes profit in 2022
In December 2022, banks posted high profit (342 billion rubles), which was associated with foreign currency revaluation amid the ruble weakening, among other factors. Over the year, the banking sector managed to fully offset the loss of the first half of 2022 and earn 203 billion rubles as of the end of the year, according to the information and analytical commentary Russian Banking Sector Development in December 2022.
In December, the corporate portfolio significantly expanded by 2.1% (after +1.0% in November), driven by budget expenditures. Annual growth reached 14.3%, which is even more than in rather successful 2021 (+11.7%).
Over the month, the amount of mortgage loans issued by banks hit a record high. As a result, in December, the portfolio increased by 3.3% (adjusted for securitisation), with its annual growth reaching 20%. Although this is below the 2021 growth rate (+31%) by a third, it is a good result, considering all the circumstances.
The consumer lending segment showed a negligible increase of 0.1%, with its annual growth equalling about 3% due to the tightening of banks’ credit policies during the elevated volatility periods in spring and autumn.
Households’ funds with banks surged by a record 7.6% over the month, which was driven by the January social payments traditionally made in advance. As a result, annual growth in households’ funds totalled 6.9%, which is more than in 2021 (+5.7%).