Russian Financial Sector Update

Bank of Russia FINANCIAL SECTOR OVERVIEW The Central Bank of the Russian Federation 28 BANKING SECTOR: KEY FIGURES (1) Active supervision and tighter regulation allowed to strengthen the health of the banking sector Figure 12: In 2013-2017 more than 300 licenses were revoked causing almost no impact on the banking sector's total assets Figure 13: Mortgage lending remains key growth driver amid falling rates Number of credit institutions, Ihs ― Banking sector assets, RUB tn, rhs Mortgage lending to GDP ratio, %, Ihs Average weighted interest rate, %, rhs 1200 86.6 96 7.0 14.0 978 800 1000 600 41.6 HIT 80 6.0 13.0 11.9 6.1* 64 5.0 12.0 524 48 4.0 11.0 400 200 0 2011 2012 2013 2014 2015 2016 2017 1H 2018 32 3.0 10.0 16 9.6 2.0 9.0 2.2 * Estimated as of August 20, 2018 1.0 8.0 2011 2012 2013 2014 2015 2016 2017 1H 2018 Figure 14: In June 2018 corporate deposits grew by 3.6% YoY to RUB 25.5 tn Figure 15: In June 2018 retail deposits demonstrated growth by 8.8%, reaching RUB 26.9 tn Corporate deposits, RUB tn, Ihs Retail deposits, RUB tn, Ihs 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 27.0 30.0 20% 27.0 30% 28.0 27.1 15% 25.5 25% 25.5 23.2 26.0 10% 24.0 20% 24.0 5% 22.5 8.8% 15% 19.2% 22.0 3.8% 3.6% 0% 21.0 10% 20.0 -5% 19.5 5% 18.0 -10% 18.0 0% 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 Source: Bank of Russia

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