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Corporate loan portfolio to return to moderate growth rates in 2025

14 March 2025
News

In 2024 Q4, the growth in corporate lending decelerated to 2.9%, partially due to the fact that companies which received payments under government contracts were actively repaying their outstanding loans. The year-end growth rate reached a rather high level of 17.9%, although a more moderate 8–13% increase is expected in 2025.

The growth rate of the mortgage portfolio also continued to decline, equalling 1.5% over the quarter, mainly owing to a reduction in market-based mortgages amid high interest rates. Mortgage lending expanded by 13.4% over 2024 and is expected to grow by 3–8% in 2025.

The consumer loan portfolio contracted by 2% over the quarter but increased by 11.2% overall in 2024. As estimated by the Bank of Russia, its growth rate might drop to the −1% to +4% range in 2025, including because of tight monetary and macroprudential policies.

Corporate deposits with banks were up by 11.9% by the end of 2024, while household deposits increased by 26.1%. A more moderate growth in both corporate (5–10%) and household (7–12%) funds is expected in 2025.

It is assumed that 2025 will see a slight reduction in net interest margin and a significant rise in the cost of risk, which will result in profits dropping to ₽3.0—3.5 trillion.

More details are available in the quarterly review Banking Sector.

Preview photo: Ultramansk / Shutterstock / Fotodom