11 Oct 2024 17:15

Sberbank trims amount of consumer loans issued 25% MoM in Sept - department director

MOSCOW. Oct 11 (Interfax) - Sberbank reduced the amount of new consumer loans 25% month-on-month in September, Sergei Shirokov, director of the bank's Savings and Loans department, told reporters.

"Issuances declined 25% in September compared to August throughout Sberbank, though the dynamics were positive at growth of 7% year-on-year in the nine months," Shirokov said.

Sberbank issued 1.766 million consumer loans in September against 2.341 million consumer loans in August.

Shirokov said that the market for consumer lending has been gradually declining. The banking sector issued 30% fewer new loans overall month-on-month in September.

"The downturn began at the end of August and intensified during September, though consumer lending remains profitable for business. We attribute the decline to tightening regulations regarding increasing macro-prudential risk premiums as of September 1, 2024, as well as the rising cost of funding amid widening yields on Russian federal loan bonds (OFZ) and the Russian Central Bank hiking the key rate," he said.

Preliminary data indicate that the value of consumer loans that Sberbank issued dropped 39% month-on-month to 164.4 billion rubles in September from 267.5 billion rubles in August, the lending institution specified. The value of issues decreased 7% year-on-year in 9M 2024.