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Mortgages newly outperformed consumer loans in Russia
By the end of the year, its share will amount to more than half in the total portfolio of retail loans. Evgeny Dyachkin, Vice President, Deputy Head of the Retail Business Department at VTB, stated this as part of his address at the International Housing Congress.
According to VTB forecasts, by the end of 2022, the total size of the mortgage portfolio in Russia, taking into account acquired rights and securitization, may increase by 18% and reach RUR 15.2 trillion, which will be a record high figure in the mortgage market history. The main growth drivers will be active development of state and regional programs to support mortgage borrowers, the spring and summer reduction of the key interest rate, as well as joint projects of banks and developers to support the construction industry.
The unsecured loans market (consumer loans and car loans) in Russia has been developing more slowly this year than last year, largely due to lower sales in the first half of the year amid high rates. As a result, the portfolio of non-mortgage loans is unlikely to grow significantly. By the year-end, it will remain at around RUB 13 trillion.
“This year, the mortgage market in Russia exceeded the non-mortgage lending market for the first time ever. People want to improve their living conditions: someone wants to live independently, someone is expanding their families, and others are acquiring real estate for investment or rent. The mortgage market is still one of the most “healthy” in Russian retail. The past due rate here does not exceed 1%. Clients take mortgages consciously and calculate their payment burden, so the home loan sector is developing smoothly,” Evgeny Dyachkin comments.
Within nine months of 2022, VTB issued about 149 thousand housing loans in Russia for 678 billion rubles. In Q3, the bank disbursed mortgages for more than 245 billion rubles, by improving this indicator 1.5-fold vs. Q2.