Russian Financial Sector Update
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 16: Corporate lending has stabilized and shows early signs
of recovery
Figure 17: Retail loans remain the key driver of credit growth
I 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
13.3
35.5
34.0
33.3
32.5
31.0
4.1%
29.5
30%
13.5
20%
13.0
20%
15%
31.4
12.5
10%
10%
12.0
19.2%
0%
11.5
5%
10.7
4.5%
11.0
-10%
0%
10.5
28.0
-20%
10.0
-5%
-5.3%
26.5
-30%
9.5
-10%
12.15 03.16 06.16 09.16 12.16 03.17 06.17 09.17 12.17 03.18 06.18
12.15 03.16 06.16 09.16 12.16 03.17 06.17 09.17 12.17 03.18 06.18
14.0%
94.5%
12.0%
10.0%
7.2%
8.0%
6.0%
4.0%
2.0%
12.14
03.15
06.15
Figure 18: Share of bad corporate loans* reached 12.7% (01.07.18)
while loan loss reserves to bad loans ratio amounted to 82.9%
Share of bad loans, %, lhs
Loan loss reserves to bad loans ratio, %, rhs
Figure 19: Retail loans portfolio demonstrates improved quality:
the share of bad loans* fell to 8.8% (01.07.18)
09.15
12.15
03.16
06.16
09.16
12.16
03.17
06.17
09.17
12.17
I Share of bad loans, %, lhs
12.7% 95.0%
14.0%
92.5%
13.0%
90.0%
12.0%
87.5%
11.0%
82.9%
9.9%
85.0%
10.0%
97.1%
82.5%
9.0%
80.0%
8.0%
03.18
06.18
* 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
Loan loss reserves to bad loans ratio, %, rhs
107.9%
109.0%
106.5%
104.0%
101.5%
99.0%
8.8%
96.5%
94.0%
12.14
03.15
06.15
09.15
12.15
03.16
06.16
09.16
12.16
03.17
06.17
09.17
12.17
03.18
06.18
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