The Central Bank of Russia published its April banking sector update showing a moderate acceleration in bank funding to companies, continued contraction in consumer lending, and faster growth in household funds held with banks. The sector recorded a profit of RUB 261 billion, while aggregate financial performance was slightly lower due to securities revaluation effects. The amount of funds provided to companies by banks rose by 1.1% in April (0.7% in March), driven mainly by corporate loans (+0.9%), with dynamics comparable to March. Households’ outstanding mortgage loans increased by 0.4% (0.2% in March), while new mortgage issuance rose 13% largely on the back of subsidised programmes, particularly Family Mortgage; the consumer loan portfolio fell 0.7% (-0.2% in March), mainly in cash loans. Companies’ funds declined by 0.7% (-2.8% in March), partly reflecting large tax payments, whereas household funds inflows accelerated to 2.8% (+0.8% in March), linked to indexation of social allowances and earlier payments of child benefits and pensions; aggregate financial performance amounted to RUB 245 billion, affected by negative revaluation of securities recognised directly in equity.
Central Bank of Russia reports moderate April corporate lending growth and RUB 261 billion banking sector profit
The Central Bank of Russia's April update shows a moderate rise in bank funding to companies and a continued decline in consumer lending, with household funds in banks growing faster. The banking sector recorded a profit of RUB 261 billion, though financial performance was slightly impacted by securities revaluation. Notably, corporate loans increased by 0.9%, and new mortgage issuance rose 13% due to subsidised programs, while consumer loans fell by 0.7%.