Loans and investment in securities increase in September
In September, banks’ assets posted a 1.7% growth (net of FX revaluation) mainly due to the increase in lending and investment in long-term securities. This is reported in the information and analytical material Review of the Banking Sector of the Russian Federation in September 2020.
Corporate loans were up 0.8%, which is below the August readings but still higher than the average 2019 level.
Retail lending continues to expand rapidly — by 1.8% over the month, mainly due to mortgage loans.
In September, investment in debt securities also demonstrated a robust growth, predominantly in OFZs (+6.2%).
On the liabilities side, growth in corporate funds was considerable (+1.2%), though below the August level (+2.4%). Household deposits increased insignificantly (+0.1%).
In September, the net profit of the banking sector totalled 200 billion rubles, with a 22% return on capital in annual terms, which exceeded the August readings by almost 20%. However, this growth is in part attributable to FX revaluation.