The corporate lending sector experienced significant growth in October, with the portfolio of corporate loans increasing by 2.3%, compared to a 2.0% rise in September. This increase was largely driven by the issuance of several large loans for investment purposes.
In contrast, the growth of the mortgage portfolio slowed to 0.7%, down from 0.9% in September. The amount of new loans remained stable, while repayments saw a slight increase. Unsecured consumer lending contracted by 0.3%, reversing a previous increase of 0.7% in September, as higher interest rates and tighter macroprudential policies took effect.
Despite rising interest rates, there was an uptick in the inflow of funds from both households and corporations in October. Household funds grew by 1.3%, consistent with September's figures, while corporate funds increased by 1.5%, following a 1.8% rise in September.
The sector's profit reached ₽348 billion, marking a 4% increase from September's ₽336 billion. However, this performance was significantly influenced by one-off factors. When adjusted for negative revaluation of securities and subordinated loans included directly in capital, the overall financial performance amounted to only ₽77 billion, compared to ₽208 billion in September.
The total capital adequacy ratio (N1.0) stood at 12.0%. Regulatory capital saw a rise of 1.0%, attributed to the profit recognized within it.
Further details can be found in the information and analytical material titled "Russian Banking Sector Development October 2024."