Banks remembered about depositors – Newspaper Kommersant No. 154 (7355) of 08/24/2022

Large banks are launching temporary “higher rate” deposit offers, mostly for new clients. Experts do not link the increase in rates with problems in liquidity, which, however, cannot be assessed in the absence of reports. But in September, bankers expect further growth in lending, and this requires an increase in the portfolio of liabilities, market participants say.

Russian banks have begun to offer “increased” deposit rates, although the average maximum rate on deposits in the top 10 banks dropped to 6.8% in the first ten days of August. “Promo rates” (from 7%) are found in Sberbank. Alfa-Bank has a rate for “new money” at the level of 9% per annum (for a three-year period). HCF-Bank offers 8.75%, Sovcombank gives wealthy clients 8.7% per annum. In FC Otkritie for new investors there is a special offer of up to 8% per annum. Russian Standard is ready to pay 8.25% for large amounts – from 300 thousand rubles, Absolut Bank – the same rate for amounts from 10 thousand rubles. Traditionally, rates above the key one can be found in small and regional banks (ATB – 8.2%, Credit Europe Bank – 9.15%).

Banks need higher deposit rates to raise liquidity ahead of September lending growth.

“From the end of August and September, increased activity in the sale of credit products begins, which leads to a greater demand for raising funds from individuals,” explains Igor Krivonos, director of the debit cards and savings products department of HCF-bank, during this period the bank traditionally comes out with promotional offers on deposits . This is also said in Absolut Bank. “We see a strong demand for loans in all areas, and rates allow us to grow with such funding,” says Sergey Khotimsky, First Deputy Chairman of the Board.

Based on the inflation forecast and expectations for the key rate, the maximum yield is offered on short deposits – up to six months, while rates on medium-term and long-term deposits are significantly lower, says Anton Pavlov, deputy chairman of the board of Absolut Bank. But clients are now building their strategy for a longer period, in contrast to the first half of the year, says Maria Voronina, deputy head of the Savings Department at VTB. The bank believes that in the near future the main trend will be an increase in the term of deposits.

A higher rate means an opportunity to attract deposits in a short time, while it can be compensated by increased profitability of retail loans, Mikhail Doronkin, Managing Director of the NKR, believes.

The correction of conditions for deposits suggests that banks still rely on household deposits as a stable source of funding and strive to prevent their outflow, says Olga Ulyanova, an independent banking expert.

The situation in the money markets has stabilized, she explains: “The holiday season is ending, and many, especially wealthy clients, are right now in the process of making decisions about what to do with savings.” From the point of view of competition between different approaches to saving and investing funds, the expert adds, the situation is “somewhat similar to 2021, when banks fought for depositors’ money against the backdrop of affordable mortgages and an attractive securities market.”

In the spring, the competitive advantage of bank deposits looked undeniable: rates were double-digit, and the risks of losing funds in most cases are minimal, Ms. Ulyanova notes. But now the risks of investing in securities and real estate are becoming more acceptable, so banks “will continue to carefully adjust the conditions for deposits,” she said. According to Olga Ulyanova, the current single actions can launch a “series of retaliatory movements from competitors.”

Olga Sherunkova