Financial Sector Overview
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35.5
34.0
32.3
32.5
31.0
5.8%
29.5
28.0
26.5
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The Central Bank of the Russian Federation
Bank of Russia
FINANCIAL SECTOR OVERVIEW
BANKING SECTOR: LENDING
Retail loans remain the key driver of credit growth
Figure 18: Corporate lending has stabilized around 6.7% YoY
I Corporate loans, RUB tn, lhs
YoY (ccy adj., by credit institutions operating as of the reporting date), rhs
Figure 19: Retail lending increased 23.7% YoY in May 2019
I Retail loans, RUB tn, lhs
YoY (by credit institutions operating as of the reporting date), rhs
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30%
16.5
33.6
20%
15.5
14.5
10%
13.5
0%
6.7%
12.5
-10%
11.5 10.7
-20%
10.5
-30%
9.5 -5.4%
Figure 20: Share of bad corporate loans* reached 12.4%, while the
loan loss reserves to bad loans ratio amounted to 82.9%
Share of bad loans, lhs
14.0%
92.3%
12.0%
9.1%
10.0%
8.0%
6.0%
4.0%
2.0%
Loan loss reserves to bad loans ratio, rhs
Figure 21: Retail loans portfolio demonstrates improved quality:
the share of bad loans* reached 7.5%
Share of bad loans, Ihs
13.5% 12.9%
12.4% 95.0%
92.5%
12.5%
11.5%
90.0%
10.5%
87.5%
9.5%
95.6%
82.9% 85.0%
8.5%
82.5%
7.5%
80.0%
6.5%
Loan loss reserves to bad loans ratio, rhs
111.3%
114.0%
110.0%
106.0%
102.0%
98.0%
7.5%
94.0%
90.0%
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* 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
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16.1
-25%
20%
23.7% 15%
10%
5%
0%
-5%
-10%
27
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