In may, resumed growth in retail lending

In may key balance sheet indicators of the banking sector has not changed much, although there are signs of increased client activity, according to dataprovided in the information-analytical material “On the development of the banking sector of the Russian Federation in may 2020.”

Corporate portfolio remained virtually unchanged (+2 billion, or +0,01%), after strong growth in March and April can talk about lower demand due to the long holidays, and partial recovery of the cash flows of companies. Retail lending in may, on the contrary, quickened (+43 billion, or +0,2%), which is still below last year’s average monthly rate, but better negative dynamics in April (-0.7 PCT). According to a survey of several major banks among the 30 largest growth in the retail portfolio was due to mortgages, while unsecured consumer loans continued to decline. Support the mortgage was also provided by the program of subsidizing of interest rates “6.5 percent”.

Dynamics of funding in may was mixed. Household deposits slightly decreased (-39 billion, or -0.1 percent), which is typical for this month. The funds of legal entities has shown moderate growth (+77 billion, or +0.3 per cent), which positively after a strong contraction in April (-1,9%).

In may 2020, net profit of the banking sector decreased to 0.5 billion rubles per month. The decrease was largely impacted by the loss of a number of banks from operations with foreign currency amid strengthening of the ruble and relatively high expense income tax (mainly related to high results for the first quarter, as the calculation is carried out with a certain lag). Growth reserves (operational data), but still moderate.

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