... lending decreased by RUB101bn in 1H15 (0.3%) or slightly more if adjusted for 1% rouble depreciation against the dollar. However, the decrease was 2.3% excluding strong growth in Otkritie group (RUB540bn, 35%) and Credit Bank of Moscow (CBOM, RUB141bn, 51%), which, we believe, was mainly related to refinancing of large corporates' external debt. Similar Trend in Retail: Retail loans fell by 5% in 1H15 due to banks' reduced risk appetite, weaker demand given lower consumer confidence, and also due to capital constraints in some cases. We expect the trend to continue in 2H15, with positive single digit growth for the year expected only in mortages supported by state subsidies. Overdues Up; Provisions Lower: Doubtful and loss loans (a good proxy for sector NPLs) comprised 8.2% of loans (91% reserved) at end-5M15, up from 6.8% (100%) at end-2014. Annualised impairment charges (including losses on asset sales) were 3.5% of average loans in 1H15,...
