Central Bank of Russia reports stronger April corporate lending and household deposits as banking sector profit falls to RUB 348 billion

The Central Bank of Russia published its April banking sector update showing faster growth in corporate lending, a rebound in household deposits, modest mortgage expansion and broadly flat consumer credit, alongside lower monthly profitability. Corporate loans provided by banks, including bonds, rose 1.9% in April from 0.4% in March. Households’ outstanding mortgages increased 0.4% from 0.3% in March, the consumer loan portfolio edged up 0.1% from 0.4%, and the banking sector posted RUB 348 billion in profit, down 22% from March. In annualised terms, corporate lending increased by RUB 12.1 trillion, or 12.8%, versus RUB 11.5 trillion, or 12.4%, in March, with banks actively issuing ruble-denominated loans to companies across industries. Outstanding mortgages increased by RUB 2.3 trillion, or 10.5%, in annualised terms, unchanged from the previous month, and subsidised mortgages remained around 60% of total new mortgages. The consumer loan portfolio decreased by RUB 0.3 trillion, or 2.3%, in annualised terms. Household deposits rose 1.7%, partly because of early pension payments and higher social benefits, while corporate funds with banks increased 0.3% after a 3.3% decline in March linked to large tax payments. The total financial result was RUB 369 billion, reflecting positive revaluation of debt securities recognised directly in equity.