The Central Bank of Russia published its September 2025 banking sector update showing slower growth in banks’ claims on companies and a moderation in the expansion of client funds, while sector profitability increased. Banks’ claims on companies (including bonds) rose by 0.7% in September versus 1.7% in August, with growth again concentrated in ruble-denominated corporate loans, mainly to developers, oil and gas producers, and transport companies. Outstanding mortgages grew by 0.8% (0.9% in August), largely driven by government programmes, with subsidised mortgages accounting for around 80% of the total; new market-based mortgage issuance increased gradually but remained small due to high interest rates. Preliminary data showed the consumer loan portfolio fell by 0.1%, reflecting weaker cash loan issuance while credit card volumes edged up; clients’ funds growth slowed to 0.6% from 1.3%. Net profit rose to RUB 367 billion, mainly due to lower provisioning and higher net interest income. The Bank noted that the calculation principles for certain indicators and their growth rates have been changed to harmonise banking and monetary statistics.
Central Bank of Russia 2025-10-17
Central Bank of Russia reports September slowdown in corporate lending and higher banking sector profit
The Central Bank of Russia's September 2025 update shows slower growth in banks' claims on companies and client funds, while profitability increased. Claims rose by 0.7%, mainly in ruble-denominated loans to developers, oil and gas producers, and transport companies. Net profit increased to RUB 367 billion, driven by lower provisioning and higher net interest income, with changes in calculation principles for certain indicators noted.