Consumer lending slows and other activities maintain robust growth in October
According to preliminary data, October posted appreciable slowdown in unsecured consumer lending — to 1.4% vs 1.7% in September and vs 2.2% in August. This is likely due to the gradual strengthening of the cooling effect of the implemented easing, as well as an increase in the cost of lending.
Given a rather high household debt burden, such slowdown is judged to be positive. However, it will take more time to be completely sure that the trend is sustainable.
In contrast, mortgage lending slightly accelerated to 2.3% (including securitisation) vs 2.1% in September. This was in part due to the marketing policies pursued by developers and banks seeking to curb growth in their interest rates. Corporate lending was also expanding (+1.6%) across a broad range of industries, as in the previous month.
Household funds were up by 0.6%, with time deposits continuously growing amid increasing interest rates. The inflow of corporate funds slowed to 0.3% vs 1.8% in September on the back of considerable tax payments.
In October, the sector earned 231 billion rubles, with a 24% return on capital in annual terms; that is 18% above the September figure.
More details are available in the information and analytical material Russian Banking Sector Developments in October 2021.