The Central Bank of Russia published an update on banking sector developments in June, showing that corporate lending growth slowed while household lending remained firm. Corporate lending, including bonds, rose 0.4% in June versus 1.5% in May, while outstanding mortgages increased 1.0% versus 0.3% in May and consumer lending expanded 1.3% versus 1.4% in May. The banking sector’s profit totalled RUB 374 billion, slightly above May. Mortgage growth was mostly driven by news of future tightening in the Family Mortgage programme, lifting the annualised growth rate to 10.9% from 10.4% in May. Consumer loan growth remained rapid and was linked to summer holiday spending, with the annualised rate turning positive at 1.0% from minus 0.9% in May. Household funds at banks rose a moderate 0.3% after falling 0.8% in May, which the central bank linked to holiday spending and persistently high demand for cash, while legal entities’ funds were broadly flat after 2.9% growth in May, partly because of lower prices for exported energy commodities. The central bank also noted that overall financial performance in June was slightly weaker than in May at RUB 234 billion because of negative revaluation of debt securities recognised directly in capital.