Lending activity in November experienced a noticeable slowdown, attributed to high interest rates and banks' cautious approach in managing reduced capital and liquidity. The growth of the corporate loan portfolio decreased to 0.8% from October's 2.3%. Mortgage lending also saw a decline, falling to 0.4% from 0.7%, with new loans dropping in both subsidized and market-based mortgage segments. Unsecured consumer lending growth was nearly stagnant at +0.1%, following a reduction of -0.3% in October.
The rise in interest rates led to an increase in household funds by 1.2% compared to October's 1.3%, and corporate funds grew by 1.6% against the previous month's 1.5%. These funds were directed into banks.
The banking sector's profit rose significantly to ₽518 billion, primarily due to foreign currency revaluation and the one-off recovery of provisions on corporate loans. However, the overall financial performance of the sector was slightly lower at ₽479 billion due to the foreign currency revaluation of subordinated loans recognized in capital.
Further information can be found in the report titled "Russian Banking Sector Development in November 2024."