Sberbank's lending growth slows in Sept amid high interest rates, tightening regulatory requirements

MOSCOW. Oct 9 (Interfax) - Sberbank's retail loan portfolio growth slowed to 1% in September from 1.5% in August, Russia's biggest lender said in a report.

The corporate loan portfolio grew 1.9% in real terms in September, compared with 3.3% growth the previous month.

"In the environment of high rates in the economy and tightening regulatory requirements, we noted tapering of demand for credit from both corporate and retail clients that resulted in growth deceleration," Sberbank CEO Herman Gref was quoted as saying.

In nominal terms, the corporate loan portfolio grew 2.9% in September and 3.9% in August, and the retail portfolio 0.9% compared with 1.5%.

The corporate loan portfolio reached 26.6 trillion rubles as of October 1, demonstrating 14.1% growth for 9M 2024, or 13.3% excluding the effect from FX revaluation.

The retail loan portfolio increased 9.6% to 17.3 trillion rubles over 9M 2024, excluding the securitization portfolio and assignment agreements on auto loans.

The mortgage loan portfolio rose 1.1% in September, excluding the securitization portfolio, and 5.2% over 9M 2024 to 10.8 trillion rubles. Sberbank issued 222 billion rubles in mortgage loans in September and 231 billion rubles the month before.

The portfolio of consumer unsecured loans decreased 0.6% in September amid rising rates in the economy and measures taken by the regulator to tighten conditions for consumer lending, Sberbank said. The bank increased consumer lending 0.8% in August. The portfolio grew 7.9% to 4.1 trillion rubles in 9M 2024.

The credit card portfolio added 3% over the month and 3.6% in August. It grew 34.2% in 9M 2024 to 2.1 trillion rubles.

Loan portfolio asset quality improved in September, the share of overdue loans in the total loan portfolio rising just 2.1% versus 2% in August.

Retail client funds exceeded 26.1 trillion rubles. The growth in funds accelerated 1.6% in September and 1.3% excluding the effect from FX revaluation amid improved deposit terms. Growth stood at 15.4% since the start of the year and 14.8% excluding the effect from FX revaluation.

Corporate client funds stood at 12.4 trillion rubles and grew 2% over the month, and 0.7% excluding the effect from FX revaluation. Growth was 13.6% for 9M 2024 and 12.2% excluding the effect from FX revaluation.