Fitch expects decline in Russian banks' retail portfolio in 2015, zero growth in 2016
MOSCOW. Sept 17 (Interfax) - The retail portfolio of Russian banks this year could be reduced slightly, and in 2016 around zero percent growth is likely, the director of the analytic group for Fitch financial organizations, Dmitry Vasilev said at a Fitch Rating conference on Thursday.
"We expect a small decline this year, and possible zero growth in 2016," he said.
The main reason for the slowing of borrowing is the debt load of borrowers, the falling real income of the population, and growth in unreported unemployment, as well as problems with capital with a number of players.
Retail lending is deeply unprofitable at the current credit loss levels. The agency expects the majority of Russian banks to remain unprofitable throughout 2016, Vasilev said.