Russia's credit institutions reduced their 4-month profit by 9.9% to RUB 292 billion, the Bank of Russia informed.
In April, total assets of the banking sector increased by 1.4%. To a large extent, this growth was driven by corporate loans increasing by 2.05% for the month. Retail loans increased by 1.8%. The total amount of corporate and retail loans in April grew by 1.97%.
The corporate loan arrears increased by 3.7%, the retail loan arrears by 5.1%. As a result, the relative share of loans arrears increased from 4.2% to 4.3% for non-financial institutions, from 4.9% to 5% for the retail segment.
In April, banks reduced their investments in securities by 1.7%, mainly on account of a lower investment in equity securities (-53.3%); the investment in debt instruments decreased by 1.3%. At the same time, the amount of bills discounted decreased by 1.3%.
Customer funds increased for the month by 0.8%, mainly due to the growing amount of deposits placed by legal entities excluding credit institutions (+4.4%) and personal deposits (+1.7%). Current and other account balances of entities decreased by 6.4%