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VTB predicts 10% growth in retail lending this year
Last year, the bank's retail loan portfolio grew by 12% to RUB3.691 trillion, while sales rose by 17% to amount to RUB1.747 trillion.
In 2020, mortgage became the driver of retail business growth. VTB’s residential mortgage sales set a record of RUB 935 billion, exceeding the 2019 figure by nearly 40%. The bank helped over 350 thousand Russian families to buy their apartments. Sales were boosted by the government support initiative, lower rates and the mortgage business digitalization. The bank's portfolio of home loans grew by 18.6% over the year approaching 2 trillion roubles.
In the cash credit segment, VTB issued over 1.1 million loans to its customers for the amount of RUB732 billion over the past year, which is comparable to 2019. The strong growth in the fourth quarter (40%) resulted from the deferred demand and season sales. The consumer loans portfolio grew by 8% over the year to exceed 1.465 trillion roubles.
In the car loan segment, VTB issued over 90 thousand loans of RUB80 billion worth, which is less than in 2019. Meanwhile, with the sales growing at the year end, VTB's car loan portfolio exceeded 115 billion roubles in early 2021.
“Last year, VTB focused on the growth of retail lending and also on supporting the borrowers faced with a difficult situation because of COVID-19. The bank offered its clients credit holidays for the amount of about 300 billion rubles. Such a timely support allowed citizens to avoid delinquencies and resume the scheduled payments. VTB has always been one of the most active participants in the government initiatives aimed to support mortgage and car loans. More than 100 thousand borrowers enjoyed soft loans of 265 billion rubles worth to purchase apartments and cars last year. We are confident that the state support helped the market considerably during the pandemic,” Deputy President and Chairman of VTB Management Board Anatoly Pechatnikov comments on the results of 2020.
The top manager stressed that the implementation of online issue of loans to physical persons was the priority task for VTB. “In 2020, we were the first in Russia to complete fully remote mortgage and car loan transactions. And by the end of 2021, we plan to have issued online every sixth mortgage and about 6 thousand car loans. By 2022, 100% of retail loan products will be offered to our clients in the digital format,” said Anatoly Pechatnikov.
VTB will apply advanced customer service technologies both online and offline. Last year, the credit institution fundamentally updated its mobile and online banks. This increased their clientele by 25%, and the number of VTB Online users will reach 15 million by the end of 2022. Besides, starting from 2021, all new VTB offices will be opened in a new technological format, with their efficiency being 40% higher compared to brick-and-mortar points of sale.