In January, lending activities saw a decline, which is typical for the start of the year. The corporate portfolio decreased by 1.2%, a more significant drop compared to the 0.2% reduction in December. This was attributed to lower demand for loans due to higher budget transfers under government contracts during December and January.
Mortgage lending also experienced a decrease of 0.2%, following moderate growth of 0.4% in the previous month. This decline was linked to long seasonal holidays. Meanwhile, the consumer loan portfolio saw a smaller reduction of 0.3%, compared to a more substantial drop of 1.9% in December. After increased spending during New Year holidays, there was a noticeable rise in credit card usage.
Household funds with banks contracted by 0.8%, which was less than the usual outflow seen in January, likely due to high deposit rates. In contrast, after a significant inflow of 2.1% in December, corporate funds grew modestly by 0.5%.
The banking sector reported profits amounting to ₽286 billion, an increase from December’s figures when operating expenses typically peak.
Further information can be found in the report titled “Russian Banking Sector Development in January 2025.”
