The CBR has published preliminary banking sector statistics for May. Corporate portfolio growth decelerated sharply to only 0.7% MoM from 2.1% in April. YoY growth was also down to 11.9% from 13.6% in the previous month. Retail loan book growth remained robust, at 2.7% MoM and 34.8% YoY (although they were both down, 3.2% and 36.5%, respectively, in April).
Low demand for loans in the corporate segment (also affected by the long holidays in May) is likely to put further pressure on interest rates and banks’ margins, especially in the summer months when business activity is low.
Mikhail Shlemov, Svetlana Aslanova
VTB Capital analyst
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