The Central Bank of Russia published an update on banking sector developments showing that household mortgage lending continued to expand only modestly in May, while consumer lending stabilised and sector profitability increased. Outstanding household mortgage loans rose by 0.3% in May, with most new mortgages still issued under government subsidised programmes (85%). Despite major banks cancelling fees payable by developers, mortgage growth in May remained close to April’s level. The consumer loan portfolio stopped contracting after a 0.7% fall in April, supported by active use of credit cards with a grace period, while claims on companies (including bonds) increased by 0.4% compared with 1.1% in the previous month. Corporate funds held in bank accounts rose by 0.4% after a 0.7% decline in April, which was linked to large tax payments, and growth in household funds slowed to 0.2% from 2.8%, attributed to holiday spending and the early transfer of May social welfare benefits in April. Banking sector profit, excluding dividends from Russian subsidiaries, totalled RUB 296 billion (RUB 261 billion in April), with year-to-date earnings at RUB 1.3 trillion, 10% lower year on year. The central bank pointed readers to its information and analytical material Russian Banking Sector Development in April 2025 for further details.
Central Bank of Russia 2025-06-26
Central Bank of Russia reports modest May mortgage growth and banking sector profit of RUB 296 billion
The Central Bank of Russia reported modest growth in household mortgage lending in May, with a 0.3% increase, primarily under government-subsidized programs. Consumer lending stabilized, and banking sector profitability rose to RUB 296 billion, despite a 10% year-on-year decline in year-to-date earnings. Corporate and household funds in bank accounts showed varied growth, influenced by tax payments and holiday spending.