Financial Sector Overview slide image

Financial Sector Overview

1.01.16 1.04.16 1.07.16 1.10.16 1.01.17 1.04.17 1.07.17 1.10.17 1.01.18 1.04.18 1.07.18 35.5 34.0 32.3 32.5 31.0 5.8% 29.5 28.0 26.5 1.12.15 1.03.16 1.06.16 1.09.16 1.12.16 1.03.17 1.10.18 1.01.19 1.04.19 1.06.17 1.09.17 1.12.17 1.03.18 1.06.18 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 1.09.18 1.12.18 1.03.19 1.06.19 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% 1.05.19 * 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 1.01.16 1.04.16 1.07.16 1.10.16 1.01.17 1.04.17 1.07.17 1.10.17 1.01.18 1.12.15 1.03.16 1.06.16 1.09.16 1.12.16 1.03.17 1.06.17 1.09.17 1.12.17 1.03.18 1.06.18 1.09.18 1.12.18 1.03.19 1.06.19 1.04.18 1.07.18 1.10.18 1.01.19 1.04.19 1.05.19 16.1 -25% 20% 23.7% 15% 10% 5% 0% -5% -10% 27 27
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