The head of VTB24 noticed a change in consumer behaviour in January

In January 2016 VTB 24 is not decreased, the portfolio of credits to the population, and has risen, for January, quite uncharacteristically, said the head of the Bank Mikhail Zadornov at a press conference.

“Credit portfolio increased by 300 million rubles in January. This is true not only for us but also for other banks. In the savings Bank’s loan portfolio for individuals fell by only 0.1% compared with December,” — said Zadornov.

“Compared with January of last year we have nearly doubled the issuance of consumer loans, although normally January is a two-fold reduction in customer activity. We saw growth in applications and growth in approval,” — said Zadornov.

Zadornov expressed two reasons for what is happening: “In January people, after returning from holidays and seeing fluctuations of the ruble, decided to buy the goods, thus partially reinforcing your savings credits. The second version is that people can’t reduce their costs is stronger than their incomes fall”. Maybe people will gradually “change the behavior” — instead of to save everything, start to take loans, assumes Zadornov. “In February we can definitely say that has changed or not model consumption reduction that we observed in 2014,” he says.

In 2015 the real incomes of the population fell by 4%, Zadornov said. “In the fourth quarter of last year consumption fell by more than 13% in comparison with Q4 2014. Overall in 2015, consumption fell by 10%. Revenues fell, but expenditure has reduced Russians twice more as income decreases. In 2015, people paid their debts and banks refused new loans. Reduced nominal amount of credits to the population. People saved everything,” — said Zadornov.