Consumer Credit in Russia

PROSPECTS

Consumer credit gross lending exceeds the outstanding balance

In 2018, consumer credit experienced a positive performance in current value terms. However, one of the major trends faced by the industry was that gross lending exceeded the value of the outstanding balance.

Auto lending is on the rise due to government support

In 2018, auto lending continued to experience the strongest performance within consumer credit. The main driver of growth in auto lending was a government-subsidised programme.

Durables lending grows strongly

In 2018, durables lending demonstrated double-digit value growth in terms of gross lending, whilst the outstanding balance experienced more moderate growth. The major factor behind this trend was that the interest rates on durables lending declined significantly; even faster than the key interest rate of the Central Bank of Russia.

COMPETITIVE LANDSCAPE

Sberbank is the main lender

The government-owned retail bank Sberbank continued to lead consumer credit in Russia in 2018. The bank strongly benefits from its wide network, located across various Russian regions and even covering small cities.

Players try to meet consumers’ demand for convenience

In 2018, Russian banks, especially the largest players, continued to lower the interest rates on loans, developed products targeting various consumer goods and improved the quality of products. However, convenience became the main area of improvement for the majority of banks.

Home Credit & Finance Bank leads durables lending

Home Credit & Finance Bank was the leading player in durables lending in 2018. Despite the strong competition within this category it managed to maintain its position.

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