Financial Sector Overview
32L
1
765
4
4.1
12.0%
1.01.16
1.03.16
1.05.16
Bank of Russia FINANCIAL SECTOR OVERVIEW
The Central Bank of the Russian Federation
BANKING SECTOR: MORTGAGE SEGMENT
Mortgage lending is characterised by high growth rates and decent asset quality
Figure 25: Mortgage loans keep growing fast
I Mortgage loans, RUB tn, Ihs
YoY (ccy adj., by credit institutions operating as of the reporting date), rhs
Figure 26: Share of NPLs remains at historically low levels
NPL ratio, lhs
1.07.16
1.09.16
1.11.16
1.01.17
1.03.17
1.05.17
1.07.17
1.09.17
1.11.17
Figure 27: Distribution of mortgage borrowers by LTV
1.01.18
7.0
30%
4.0%
25%
3.5%
3.0%
20%
3.0%
23.3%
15%
2.5%
10%
2.0%
5%
1.5% 113.0%
0%
1.0%
1.03.18
1.05.18
1.07.18
1.09.18
1.11.18
1.01.19
1.03.19
1.05.19
42%
■4Q2017
■3Q2018
1Q2018
2Q2018
4Q2019
■1Q2019
35%
28%
21%
14%
11.9%
9.7%
7.1%
7%
4.1%
2.1%
0.6%
0%
10-20% 20-30% 30-40% 40-50% 50-60% 60-70% 70-80% 80-90% >90%
LTV interval
1.01.16
1.03.16
1.05.16
1.07.16
1.09.16
1.11.16
1.01.17
1.03.17
1.05.17
Loan loss reserves to bad loans ratio, rhs
141.8%
142%
137%
132%
127%
122%
1.5%
117%
Figure 28: Risk weights applied to mortgage loans
end 2017
January 1, 2018
January 1, 2019
1.07.17
1.09.17
1.11.17
1.01.18
1.03.18
1.05.18
1.07.18
1.09.18
1.11.18
1.01.19
40.6%
300%
300%
250%
200%
200%
+150
200%
22.6%
+50
+50
150%
+50
+50
100%
150
50%
100
100
1.2%
0%
Loans for financing under
equity construction
agreements with
Mortgages with
LTV>80%
Mortgages with
LTV>90%
down payment <20%
Source: Bank of Russia
1.03.19
1.05.19
112%
29View entire presentation