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 2025-05-28
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%.