A Slowdown in the Growth Rate of Crediting

Thus, in November 2012, the banking sector’s aggregate assets increased¹ by 1.6%, which points to a drop in the rate of growth both on the previous months (in September, growth amounted to 1.9%; in October – to 2.3%) and on November 2011 (2.7%). The per annum growth rate, as indicated by November’s results, amounts to 20.1%, which is a record low for the period since September 2011.

In November, the growth rate of credit extended to individuals was the lowest since February 2012; over the month, the population’s debt to banks rose by 2.5%. Nevertheless, the per annum growth rate still remains above 40%.

The quality of the retail credit portfolio over the month remained practically unchanged. The share of outstanding debt in the volume of credits issued to physical persons declined from 4.5 to 4.4%, while the ratio of reserves against potential losses to the total debt volume remained at the level of 6.3%.

In November, the growth rate of credit extended to corporate borrowers was also low. Over the month, this segment of the credit market increased by only 0.7%, while the per annum growth rate dropped to 16.0%.

Over the course of the month, the quality of credit extended to corporate borrowers displayed no significant changes, either. The share of outstanding debt remained at the level of 4.8%, while the ratio of reserves against potential losses to the total credit portfolio’s volume declined from 7.8 to 7.7%.

M. Yu. Khromov – Senior Expert of the Structural Research Center

¹ Hereinafter the growth rates of balance sheet indices are adjusted by the exchange rate’s movement, unless otherwise specified.