Main /

Analysis of the Households’ Deposit Market in Q1 2017

Date: 24.05.2017

The State Corporation “Deposit Insurance Agency” (DIA) has analysed the development of the market for households’ deposits in Q1 2017. Here are the most significant trends.

Individuals’ Savings Activity

In Q1 2017 the amount of households’ deposits in banks decreased by 232.7 billion rubles to 23,967.6 billion rubles (in Q1 2016 deposits fell by 700.2 billion rubles). In relative terms the total amount of deposits was down by 1% (and by 3% in Q1 2016). Without factoring in currency revaluation, deposits grew in Q1 2017 by 0.7%.

The amount of bearer savings certificates in the reporting period increased by 0.7 billion rubles (by 0.1%) to 486.0 billion rubles.

As of 1 April 2017 deposits opened in the name of individual entrepreneurs amounted to 346.4 billion rubles (1.4% of the total amount of households’ deposits), having increased by 9.0 billion rubles (by 2.7%) since the beginning of the year.

As a result, in Q1 2017 the total amount of insured deposits in banks declined by 231.9 billion rubles to 23,788.7 billion rubles (in Q1 2016 it dwindled by 746.4 billion rubles). In relative terms the decrease amounted to 1.0% (and to 3.3% in Q1 2016); without factoring in currency revaluation, insured deposits grew by 0.7%.

Deposit Distribution by the Size

In Q1 2017 the greatest amount was attracted as deposits amounting from 700 thousand to 1.4 million rubles; this was an increase by 2.4% in terms of the amount and by 2.3% in terms of the number of accounts. Deposits amounting from 100 thousand to 700 thousand rubles showed minor growth by 0.4% in terms of the amount and the number. Savings amounting to more than 1.4 million rubles fell by 1.7% in terms of the amount while their number increased by 3.8%. Deposits amounting to less than 100 thousand rubles decreased by 8.9% in terms of the amount, without changes in the number of accounts.

According to the results of the 1st quarter, the share of deposits amounting to more than 1.4 million rubles showed a minor decrease from 41.6% to 41.3%. The share of deposits amounting from 700 thousand to 1.4 million rubles increased from 19.5% to 20.1%. The share of deposits amounting from 100 thousand rubles to 700 thousand rubles grew from 29.5% to 29.9%, and the share of those amounting to less than 100 thousand rubles fell from 9.4% to 8.6%.

As of 1 April 2017 the average deposit size in the banking system (not including accounts in an amount of less than 1 thousand rubles) was 163.1 thousand rubles, having increased by 2.9% since the beginning of the year.

Interest Rates and Their Effect on Deposit Dynamics

The results of monitoring interest rates on deposits in 100 major retail banks evidence a minor decrease in deposit profitability. According to the results of Q1 2017, 44 out of 100 banks cut their rates. In 16 banks rates increased and in 40 they remained unchanged.

As of 1 April 2017 the average level of (deposit-amount-weighted) rates on one-year ruble deposits amounting to 1 million rubles fell by 0.2 p. p. to 7.2% per annum. Average (unweighted) interest rates on such deposits decreased by 0.4 p. p. to 8.1%.

According to the Agency’s estimates, in the near future the gradual decrease in interest rates on deposits will persist. Meanwhile actual profitability of deposits (in relation to inflation) will remain positive.

Deposit Distribution by Currency and Term

In Q1 2017 the share of foreign-currency deposits decreased by 1.5 p. p. from 23.7% as of the beginning of the year to 22.2% as of 1 April 2017. In the first place the decrease was caused by ruble appreciation.

The share of long-term deposits opened for a period of more than 1 year decreased insignificantly, from 46.5 to 46.0%. The share of deposits with a term of less than 1 year was up from 35.2 to 36.3% as of 1 April 2017. The share of call deposits showed a minor decrease from 18.3 to 17.6%.

Deposit Concentration

The share of 30 banks that, in terms of the amount of households’ deposits, are the largest ones increased in Q1 2017 from 85.2 to 85.6%. The increase in the market share of this group of banks has been observed since the end of 2013. Meanwhile the Sberbank’s share did not change in the reporting period, having remained equal to 46.5%.

DIA’s Insurance Liability

In Q1 2017 the amount of the DIA’s insurance liability (covered deposits) was up by 0.8 p. p. to 68.6% of all insured deposits. Without factoring in the Sberbank, the amount of the DIA’s insurance liability increased by 1.0 p. p. to 62.8%.

Back to the list

www.iadi.org
www.efdi.eu