Russian corporate loans expand 1.5% in May
The Bank of Russia reports robust growth in the corporate lending portfolio by 1.5 percent in May 2026. Retail lending saw mixed trends, while the banking sector's net profit increased by 4 percent.
State-owned firms drive corporate growth
The corporate lending portfolio in Russia grew by 1.5 percent in May, following a 1.9 percent increase in April, primarily driven by loans to legal entities.
Approximately half of this growth stemmed from state-owned companies and developers, reflecting targeted economic support.
Banks also significantly increased their investments in corporate bonds by 0.4 trillion rubles, marking a 6.2 percent rise.
Overall, the annual growth of claims on companies accelerated to 13.6 percent, indicating sustained expansion in corporate financing across various sectors.
Mortgage growth slows, consumer loans accelerate
Mortgage debt among the population continued its moderate increase, rising by 0.3 percent in May, a slight deceleration from 0.4 percent in April.
State-supported mortgages accounted for approximately 55 percent of new issuances, a notable decrease from an average of 82 percent in 2025.
Concurrently, unsecured consumer lending saw a significant acceleration, growing by 1.4 percent after a mere 0.1 percent in April, potentially influenced by seasonal holiday spending.
Auto loans, however, showed only a modest increase of 0.6 percent, constrained by high vehicle prices and interest rates.
Solid profit, underlying challenges
The banking sector's net profit rose, driven by core income, but negative debt security revaluations tempered the overall result.
While client funds grew, declining retail deposits suggest household spending shifts, posing future funding stability questions.
Despite sound credit quality and liquidity, the high share of state-supported mortgages and dividend impact on capital growth demand ongoing supervisory vigilance.