April lending across all segments still on the rise
Mortgage portfolio edged up by 2.2%, almost like in March (+2.1%). The growth in the number of issued subsidised mortgage loans edged down, indicating an increase in the share of market mortgages and a shift in demand from the new housing market towards the secondary one. Consumer lending also expanded rather fast (+1.2%) after its recovery in March.
Corporate loan portfolio continued to actively grow for the third month in a row (by 1.7% in April, and by 1.5% a month in February—March).
Household funds with banks increased significantly (+1.6%), partly because of social payments made in advance before the May holidays and their larger amounts. Corporate funds decreased for the second month in a row (-1.5% in April and −1.6% in March) due to considerable tax payments.
In April, banks’ profits reached ₽224 billion with a 21% return on capital in annualised terms, which is below the March result of ₽330 billion, including due to an increase in provisioning and a decline in core revenues.
More details are available in the information and analytical material Russian Banking Sector Development in April 2023.