Retail lending surges in March
The mortgage portfolio was up by 2.1% (vs +1.5% in February), which is generally close to the pre-crisis level. The increase was recorded in both market-based (+30%) and subsidised (+40%) mortgage lending. Growth in consumer lending sped up as well, namely from 0.5% in February to 1.4% in March. Corporate lending steadily expanded (+1.5%), just as the month before.
The rise in households’ funds with banks was moderate (+0.7%), whereas companies’ funds edged down by 1.6% due to large tax payments.
In March, banks’ profits totalled 330 billion rubles, which is more than in February (293 billion rubles). Profits increased as a result of higher net interest and fee incomes and the effect of several one-off factors, including the positive revaluation of securities.
More details are available in the information and analytical material Russian Banking Sector Development in March 2023.