Omsk Region's Retail Lending Market Remains in a Slowing Trend, According to VTB
In the face of a rising key interest rate, a noticeable decline in loan volumes has been observed, with clients shifting their preference towards savings products. This revelation was shared by Alexei Sudzalnick, the regional head of VTB, during a recent press conference.
During the first quarter of 2025, the bank extended 1.8 billion rubles in loan funds to the local population, marking a 60% drop compared to the same period in 2024. The mortgage loan volume for the reporting period stood at 1 billion rubles, with 96% of these loans secured under state support programs. Over 1,200 personal loans worth 560 million rubles were given to Omsk residents during the first quarter, while clients received 240 million rubles in car loans.
Speaking on the trend, Sudzalnick stated, "There seems to be a 'cooling' of retail lending, and funds are being redirected to savings. Omsk residents are postponing large purchases on credit and preferring the high yields of savings products like deposits and savings accounts. The demand for secured lending may be adjusted in light of state support measures."
According to analysts at VTB, the Russian retail lending market is expected to contract by approximately 30% by the end of the year. The mortgage sector is set to lose around 20% compared to 2024, but this could vary greatly depending on decisions regarding state support programs. The car lending segment may witness a decrease of up to 40%, largely influenced by the introduction of macroprudential limits for secured car loans from July 1 and changes in the existing legislation on the mandatory cooling-off period from September 1. Personal loans are predicted to show a year-on-year decrease of about 35%.
Residents of Omsk are encouraged to stay informed through reliable local news sources like "Om1 Oмск," and to consider the benefits of VTB products. The bank may soon announce special offers and promotions.
What industries might see a shift in focus due to the changes in retail lending, as stated by Sudzalnick and analysts at VTB?Finance, business, and banking-and-insurance industries could potentially witness an increase in savings products, as Omsk residents prefer high yields of savings products over loans in the midst of the 30% contraction in the retail lending market.
