Russian bank VTB expects retail lending to go into hibernation in 2025
Published by Global Banking and Finance Review
Posted on January 29, 2025

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by Global Banking and Finance Review
Posted on January 29, 2025

MOSCOW (Reuters) - State-owned Russian bank VTB said it expects the retail lending market to go into hibernation mode this year as banks prioritise the quality of their loan portfolios with the central bank's key rate at 21%.
Lending growth remained high in 2024, even as the central bank steadily hiked rates to the highest level in over 20 years, but a decline in the retail segment, particularly in mortgage and consumer loans, is probable this year, said Georgy Gorshkov, deputy president and chairman of VTB's management board.
"The retail credit market will go into hibernation this year," Gorshkov told reporters. "Its contraction will be the maximum in recent years."
"The portrait of a retail borrower will change in favour of clients with a low debt load and those who qualify for government programmes."
Gorshkov said VTB's retail customers last year made 2.1 million cross-border transfers in currencies of countries that have not imposed sanctions against Russia over its actions in Ukraine, a six-fold increase on 2023.
"The volume of transactions exceeded 50.5 billion roubles ($515.33 million)," Gorshkov said, estimating this would rise to more than 240 billion roubles in 2025.
Major Russian banks were blocked from dollar markets and the SWIFT global payments system soon after Moscow sent its troops into Ukraine in February 2022, complicating the cross-border flow of funds.
($1 = 97.9955 roubles)
(Reporting by Elena Fabrichnaya; Writing by Alexander Marrow; Editing by Jamie Freed)