Retail lending slows down in July
According to preliminary data, mortgage lending edged up by 0.7% after soaring by 3.1% in June. The Subsidised Mortgage programme was terminated in early June, but a number of loans were still granted under contracts concluded before 1 July 2024. The Family Mortgage programme was relaunched from 11 July 2024 under new conditions. It will take several months to correctly assess the effect of the amendments to the government subsidised programmes, therefore it is too early to draw any conclusions yet.
The growth of the consumer loan portfolio decelerated from 2.0% in May—June to 1.4% in July, while remaining fairly fast. The slowdown was owing to higher interest rates and the increased macroprudential add-ons.
The expansion of corporate lending sped up to 2.3% from 1.5% in June, excluding large bridge loans. Borrowings, mainly working capital loans, were raised by companies from a wide range of sectors.
Driven by attractive deposit rates, household funds continued to grow, but more slowly than in June (+1.1% after +1.7%), which may be associated with high holiday costs. Companies’ funds also increased, namely by 1.6%, after a 0.5% decline in June.
The banking sector’s profit (adjusted for dividends from subsidiary banks) amounted to ₽306 billion, driven by higher operating profit and positive foreign currency revaluation.
More details are available in the information and analytical material Russian Banking Sector Development in July 2024.