Lending growth expectedly decelerates in January
The growth of the corporate loan portfolio paused in January, after its quick expansion by 1.8% in December 2023. Such a slowdown is generally typical of January as this is largely associated with seasonality in financing government expenditures.
As to mortgage lending, this segment recorded a notable decline (according to preliminary data, the growth rate dropped from 2.9% in December 2023 to 0.6% in January 2024). This deceleration was due to a number of factors, including the long New Year holidays, tighter requirements under subsidised programmes and macroprudential policy, as well as higher market-based mortgage rates. Consumer lending demonstrated a moderate rise (as estimated, by 0.8% after its 0.1% reduction in the previous month).
Households’ funds decreased by 0.7%, which is typical of January because spending usually grows during the holidays. In particular, people, among other things, withdrew the funds that they had received as advance payments in December 2023. The inflow of funds equalled 6.9%. Despite the seasonality, the outflow of funds in January was smaller compared to
The banking sector’s profit totalled ₽354 billion and the return on capital reached nearly 30% in annualised terms, which is close to 26% in January 2023.
More details are available in the information and analytical material Russian Banking Sector Development in January 2024.