Financial Institutions Take Charge in Advancement
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In June 2025, consumer lending across Russia experienced a contraction compared to May, with retail lending shrinking by 0.5%. This follows a decrease of 3.6% over the first five months of the year, indicating a continuing downward trend going into June.
Despite a key rate cut to 20% in June, the retail segment faced growing challenges, including rising non-performing loans (NPLs) which increased from 3.8% at the end of 2024 to 5% in May 2025. This reflects deteriorating loan quality and higher default risks among individual borrowers.
On the other hand, corporate lending exhibited modest growth and stability. Major banks reported a 2.3% year-on-year increase in their corporate loan portfolio, with some sectors, such as energy and defense, showing growth primarily concentrated in state-prioritized regions.
However, more specific regional data for consumer lending trends in June 2025 could not be found in the search results. Nevertheless, it is worth noting that consumer lending in Krasnodar Krai increased by 4.6% in June compared to May.
The highest number of consumer loans issued in June 2025 was recorded in Moscow City, Moscow Oblast, Krasnodar Krai, and Sverdlovsk Oblast. Despite this, the volume of consumer lending in the past two months is half of what was issued during the same period last year.
Regarding regional performance and significant growth, corporate lending showed relative stability or mild growth in certain sectors. For instance, VTB Bank reported a 2.3% year-on-year increase in its corporate loan portfolio, reaching 16.3 trillion rubles, with some regions impacted by industry-specific challenges, such as increased NPLs in the coal industry.
In summary:
| Aspect | Trend in June 2025 vs. May 2025 | |----------------------------|--------------------------------------------------------------| | Consumer (retail) lending | Contracted by around 0.5% in May; continued downward pressure | | Corporate lending | Mild growth (~2.3% YoY in major banks); stable but fragile | | Non-performing loans (NPLs) | Rising sharply in retail (up to 5%) and marginally in corporate (3.5%) |
More granular regional data might be available from the Bank of Russia or state statistical agencies, but is not included here.
In the retail sector, the increase in non-performing loans suggests financial difficulties for individual borrowers, potentially affecting overall business performance. In contrast, corporate lending, despite a surge in non-performing loans in some sectors, has shown mild growth, especially in energy and defense sectors.
