The Central Bank of Russia published its Russian Banking Sector Development update for August 2025, showing a further acceleration in corporate lending and a modest pickup in mortgage lending, while consumer lending was broadly unchanged and inflows of household funds slowed sharply. The update also reported a steep decline in the banking sector’s net profit. Banks’ claims on companies, including investments in bonds, increased by 1.3% in August after 1.1% in July, driven mainly by ruble corporate loans. Mortgage lending growth edged up to 0.9% from 0.7%, with the amount of loans issued rising by 10% and increases recorded in both subsidised and market-based lending amid declining loan rates. The consumer loan portfolio barely changed after contracting by 0.5% in July, while household funds rose by 0.1% after a 1.3% increase in July and corporate funds grew by 2.4% versus 1.4%. Net profit for the sector, excluding dividends from Russian subsidiary banks, almost halved from RUB 397 billion in July to RUB 203 billion in August.
Central Bank of Russia 2025-09-23
Central Bank of Russia reports faster August corporate and mortgage lending growth as sector net profit falls to RUB 203 billion
The Central Bank of Russia's August 2025 update highlights accelerated corporate lending and a modest rise in mortgage lending, while consumer lending remained stable and household fund inflows slowed significantly. Banks' claims on companies rose by 1.3%, driven by ruble corporate loans, and mortgage lending growth increased to 0.9%. The banking sector's net profit nearly halved to RUB 203 billion, excluding dividends from Russian subsidiaries.