Active growth in corporate lending continues in August while retail lending expands more moderately
The growth rate of corporate lending remained high (+1.9% in August vs +2.3% in July). Borrowings, mainly working capital loans, were raised by companies from a wide range of sectors.
According to preliminary data, mortgage lending edged up by 0.9% (vs +0.7% in July). Slight growth was observed in both market-based and subsidised mortgage lending where 90% of new loans were issued under the Family Mortgage programme.
As the interest rates were rising and macroprudential regulation was tightening, consumer lending continued to expand more slowly, with its growth rate in August equalling +1.3% vs +1.4% in July.
Household funds with banks were rapidly increasing (+1.3% vs +1.1% in July), specifically on time deposits in rubles due to high rates. Companies’ funds, mainly ruble account balances of exporters, were also up (+1.3% vs +1.6% in July).
The banking sector’s profit (adjusted for dividends from subsidiary banks) amounted to ₽435 billion, having increased largely due to the positive foreign currency revaluation resulting from the ruble’s weakening against the euro and the US dollar.
More details are available in the information and analytical material Russian Banking Sector Development in August 2024.