Mortgage portfolio continues to grow modestly in May
Outstanding mortgage loans of households gained 0.3% in May, which is close to the April level despite the fact that major banks cancelled fees payable by developers. Most mortgage loans are still issued under government subsidised programmes (85%).
The consumer loan portfolio stabilised in May after losing 0.7% in April, as individuals were actively using credit cards with a grace period. Claims on companies (including bonds) edged up by 0.4% vs 1.1% in the previous month.
Corporate funds in bank accounts increased by 0.4% vs a 0.7% decline in April due to large tax payments, while growth in household funds slowed to +0.2% vs +2.8% in the previous month. This may be due to considerable spending during holidays and the early transfer of May social welfare benefits in April.
The banking sector’s profit, excluding dividends from Russian subsidiaries, totalled ₽296 billion (vs ₽261 billion in April). The year-to-date earnings of the sector came in at ₽1.3 trillion or 10% less year on year.
More details are available in the information and analytical material Russian Banking Sector Development in April 2025.