Outstanding mortgage loans for households saw a modest increase of 0.3% in May, maintaining a level close to that of April. This growth occurred despite major banks cancelling fees payable by developers. A significant portion of these mortgage loans, approximately 85%, are issued under government-subsidized programs.
The consumer loan portfolio showed signs of stabilization in May after experiencing a 0.7% decline in April. This stabilization was attributed to individuals actively using credit cards with grace periods. Claims on companies, including bonds, rose by 0.4%, which is lower compared to the 1.1% increase observed in the previous month.
Corporate funds held in bank accounts increased by 0.4%, recovering from a 0.7% decline in April due to large tax payments. However, the growth rate of household funds slowed significantly to 0.2%, down from a robust 2.8% increase the previous month. This slowdown may be linked to considerable spending during holidays and the early transfer of May social welfare benefits in April.
The banking sector’s profit, excluding dividends from Russian subsidiaries, reached ₽296 billion in May, up from ₽261 billion in April. Year-to-date earnings for the sector totaled ₽1.3 trillion, marking a decrease of 10% compared to the same period last year.
Further details can be found in the information and analytical material titled “Russian Banking Sector Development in April 2025.”
