Financial Sector Overview slide image

Financial Sector Overview

8.0 7.5 7.0 6.5 6.0 5.6 5.5 -11.4% 5.0 4.5 Bank of Russia FINANCIAL SECTOR OVERVIEW The Central Bank of the Russian Federation BANKING SECTOR: UNSECURED CONSUMER LENDING The unsecured lending market is at an ascending stage of the credit cycle Figure 22: Accelerated growth of the unsecured consumer lending continues Unsecured consumer loans, RUB tn, Ihs YoY (by credit institutions operating as of the reporting date), rhs 7.9 30% Against the background of advancing growth in unsecured consumer lending relative to households' income, The Bank of Russia revised the scale of risk weights for such loans in 2017-2018 in order to prevent excessive risk-taking in this segment Figure 24: Risk weights applied to unsecured consumer loans, % 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 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 1.03.19 1.05.19 Figure 23: Share of NPLs decreased to 8.6% 20% INPL ratio, lhs 18% 16.9% 16% 14% 12% 103.6% 10% 8% Loan loss reserves to bad loans ratio, rhs 1.01.16 1.03.16 1.05.16 1.07.16 1.09.16 1.11.16 Source: Bank of Russia 1.01.17 1.03.17 1.05.17 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 1.03.19 1.05.19 ☑24% 25.3% 18% 12% ■March 1, 2017 May 1, 2018 September 1, 2018 April 1, 2019 6% 0% 600% -6% 600 -12% 500 400 300% 127.0% 130% 300 125% 230% 200% 120% 170% +30 200 150% +30 115% +60 +30 +50 +30 +30 +10 110% +20 100 +10 8.6% 105% 140 100 100 110 100% 0 10-15% 15-20% 20-25% 25-30% 30-35% 35%+ Effective interest rate 28
View entire presentation