The head of VTB24, told about the low demand for loans due to the depletion of the Russians

As said Zadornov at a press conference, reduction of incomes of Russians has affected their attitude to credit, reports . The volume of lending in 2016 has grown by only 1.1%, while the traditional demand in December for loans was not.

“We have a desire to lend, there is liquidity, but there is no demand. The average citizen has become poorer,” he complained. As recalled by the Council, for the last two years, real incomes declined by 15%.

According to Mikhail Zadornov, VTB 24 “the best months” was the month of August and September, and in October, “people began to understand that their revenues are down and this has affected the demand for loans.”

According to the banker, the citizens are careful to pay the debts and strive to repay loans. Due to this, in 2016, according to preliminary data for 11 months, the increase of delay in the banks amounted to only 24 billion. Zadornov did not rule out that the increase of delay can be zero at the end of 2016. “In December we saw a large amount of the early repayment of loans”, — he said.

Loan growth in 2016, according to Mikhail Zadornov, was secured only by two products — mortgage loans granted in retail chains to purchase specific products (POS loans). According to him, the volume of mortgages increased by 12%, POS-loans — 9%. “The volume of loans issued to other products decreased,” he added.

In 2017 Zadornov does not preclude the improvement of the situation on the retail banking market, tying it to growth in real incomes. According to the head of VTB24, that will contribute to the forthcoming indexation of wages and pensions, improvement of the situation on the labour market and lower inflation.

“We expect that in 2017 there will be a small but still an increase in the incomes of the population, 2-3%. In this connection, we expect to improve self-awareness of people and rising demand for loans. While we are seeing that for the first three weeks of January, demand for loans must equal the demand of mid-December, although January is still characterized by a lull,” said Zadornov.

Previously VTB24 predicted growth of lending to individuals in 2017 up to 10%. However, the pace of loan growth in the fourth quarter, according to Mikhail Zadornov, suggests that they may be less predictive.

Net profit for the 2016 VTB24 increased to 43.1 billion RUB According to Zadornov, this is a record profit in the history of the Bank. By the end of 2015, the Bank showed a profit of 0.46 billion, and in 2014 earned 31.5 billion RUB.