Corporate lending in April showed a notable increase, with growth recorded at 1.9%, slightly higher than the 1.8% observed in March. Developers contributed significantly to this rise, accounting for about one-third of the total increase. Additionally, loans were extended to companies across various sectors to complete ongoing investment projects and fulfill state contracts.
Preliminary data indicates that the mortgage portfolio's growth accelerated to 1.4% from March's 1.2%. This was largely due to a reduction in early loan repayments, while the issuance of new loans did not see a substantial increase. Government programs accounted for approximately 75% of these loans.
Consumer lending maintained its momentum from March, with growth steady at 1.8%. Households continued depositing funds actively into banks, with an increase of 2.1% compared to March's 1.9%. Ruble-denominated time deposits were particularly popular due to high interest rates.
Corporate funds saw a temporary surge of 5.0%, following an outflow of 1.6% in March, attributed to a shift in the tax payment period from late April to early May.
The sector reported profits totaling ₽305 billion in April, representing a return on capital of 24.5% annualized, which is a 13% improvement over March's results of ₽270 billion and a return on capital of 22%. The profit increase was primarily due to reduced provisioning after significant additional loss provisions were made in March.
Further information can be found in the analytical material titled "Russian Banking Sector Development in April 2024."