The CBR has published its preliminary Russian banking sector statistics for April. The key takeaways are as follows.
Loan growth accelerated, with the corporate loan book up 2.4% MoM and retail gaining 3.8% MoM vs. 1.9% MoM (28.2% YoY) and 3.5% MoM (42.0% YoY), respectively, in March.
Retail term deposits increased further, up 2.3% MoM (19.8% YoY).
The loan book expansion shows the recovery in demand after the seasonally weak 1Q12 and the decline in political risks after the presidential elections. Meanwhile, solid consumption growth is driving the credit expansion, with the growth rates now at a peak. The increase in inflation which we expect in 2H12 is likely to mute demand in the sector, with the accelerating growth rate posting upside risks to consensus estimates for 20% YoY expansion in FY12.