Guidelines for the Development of the Russian Financial Market slide image

Guidelines for the Development of the Russian Financial Market

The Central Bank of the Russian Federation Bank of Russia FINANCIAL SECTOR OVERVIEW BANKING SECTOR: KEY FIGURES (2) Active supervision and tighter regulation allowed to strengthen the health of the banking sector Figure 14: Corporate lending has stabilized and shows early signs Figure 15: Retail loans remain the key driver of credit growth of recovery Corporate loans, RUB tn, Ihs Retail loans, RUB tn, lhs YoY (ccy adj., by credit institutions operating as of the reporting date) rhs YoY (ccy adj., by credit institutions operating as of the reporting date) rhs 35.5 30% 13.0 16.9% 12.820% 34.0 33.3 20% 12.5 15% 32.5 5.4% 10% 12.0 10% 31.0 0% 11.5 5% 4.1% -5.3% 29.5 -10% 11.0 0% 31.4 10.7 28.0 -20% 10.5 -5% 26.5 -30% 10.0 -10% 12.15 03.16 06.16 09.16 12.16 03.17 06.17 09.17 12.17 03.18 12.15 03.16 06.16 09.16 12.16 03.17 06.17 09.17 12.17 03.18 14.0% 94.5% 12.0% 10.0% 7.2% 8.0% 6.0% 4.0% 2.0% Figure 16: Share of bad corporate loans* reached 12.2% (01.04.18) while loan loss reserves to bad loans ratio amounted to 84.6% Share of bad loans, %, lhs Figure 17: Retail loans portfolio demonstrates improved quality: the share of bad loans* fell to 9.5% (01.04.18) Share of bad loans, %, lhs 12.14 03.15 06.15 09.15 12.15 03.16 Loan loss reserves to bad loans ratio, %, rhs 95.0% 14.0% 12.2% 92.5% 13.0% 90.0% 12.0% 87.5% 11.0% 84.6% 9.9% 85.0% 10.0% 97.1% 82.5% 9.0% HT 80.0% 8.0% 06.16 09.16 12.16 Loan loss reserves to bad loans ratio, %, rhs 109.0% 106.1% 106.5% 104.0% 101.5% * Loans classified into quality category of IV and V according to the requirements of Regulation No.590-P2. Quality category IV - high credit risk (probability of financial losses due to non-performance or improper performance of obligations by the borrower requires its depreciation by 51 to 100 per cent); Quality category V - no possibility of loan repayment due to the borrower's inability or refusal to meet loan commitments, which requires complete (100 per cent) depreciation of the loan. Source: Bank of Russia 12.14 03.15 06.15 09.15 12.15 03.16 06.16 09.16 12.16 03.17 06.17 09.17 9.5% 99.0% 96.5% 94.0% 12.17 03.18 27
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