According to preliminary data, mortgage lending increased by 0.7% in July after a 3.1% rise in June. The Subsidised Mortgage programme ended in early June, but several loans were still granted under contracts concluded before July 1, 2024. The Family Mortgage programme was relaunched on July 11, 2024, under new conditions. It will take several months to accurately assess the impact of these amendments to government-subsidised programmes; therefore, it is too early to draw any conclusions.
The growth of the consumer loan portfolio slowed from 2.0% in May-June to 1.4% in July while remaining relatively fast. This slowdown was attributed to higher interest rates and increased macroprudential add-ons.
Corporate lending expansion accelerated to 2.3% from 1.5% in June, excluding large bridge loans. Companies from various sectors raised borrowings mainly for working capital loans.
Household funds continued to grow due to attractive deposit rates but at a slower pace than in June (+1.1% after +1.7%), possibly due to high holiday costs. Companies' funds also increased by 1.6%, following a 0.5% decline in June.
The banking sector's profit (adjusted for dividends from subsidiary banks) amounted to ₽306 billion, driven by higher operating profit and positive foreign currency revaluation.
More details are available in the information and analytical material "Russian Banking Sector Development in July 2024."
---