Mortgage growth speeds up in June amid expected changes in subsidised programmes
The mortgage portfolio expanded by 3.1% over the month, compared to 1.7% in May, according to preliminary data. The acceleration was associated with borrowers’ desire to raise a mortgage loan before the termination of the Subsidised Mortgage programme and changes in the Family Mortgage programme. Mortgages issued under the subsidised programmes accounted for 80%.
The growth rate of the consumer loan portfolio equalled 2%, which was driven by high consumer activity amid rising incomes.
Given higher deposit rates, households’ funds with banks continued to quickly increase, growing by 1.7% over the month. Legal entities’ funds contracted by 0.5% after surging by 2.7% in April—May. The reduction was attributed to dividend payments, among other reasons.
Banks’ profit (adjusted for the redistribution of revenues across the banking sector) totalled ₽225 billion in June, which is 12% less month-on-month.
More details are available in the information and analytical material Russian Banking Sector Development in June 2024.