Major banks started the year with lower rates of ruble deposits

the Beginning of the new year’s biggest banks, led by Sberbank said a new wave of decrease in rates of ruble deposits. Only January 10 from three banks from top-5 largest portfolio of deposits has reduced rates of retail deposits.

As rates have fallen

the savings Bank has lowered rates of deposits of a basic line by 0.1–0.25 percentage points (PP) in the retail segment from 2.95–4.65% to a 2.7–to 4.5% depending on amount and term of investment. The terms of his protoklitov with higher rates have not changed: until January 15, continues to operate “Christmas bonus” to all customers with a rate of 4.85–5.25%, and up to January 31 – “Best start” for new investors with a yield of 5-5,85% per annum.

Another state Bank, Russian agricultural Bank on Friday lowered the base rate by 0.05–0.25 PP in addition, in January stopped the action, according to which before the new year could accommodate rubles for 3 years at 7% per annum. Thus, the maximum retail rate of Bank deposits decreased from the beginning of the year by 0.6 percentage points to 6.4% annual (the contribution “Profitable”, remote, for a period of 4 years).

the same day the largest private Bank, Alfa-Bank has lowered rates across the range of deposits by 0.2–0.5 percentage points and abolished the seasonal contribution “Even higher” with a rate of 5.94% per annum (to 6.1% after the capitalization). Now the maximum rate of retail Deposit for clients who do not use additionally other services of the Bank, fell to 5.1% (with 5 mln. for 3 years; 5.5 percent after capitalization).

Sberbank and Alfa-Bank did not change rates of the underlying deposits over two months. Russian agricultural Bank last reduced rates of ruble in early December.

previous topic: the savings Bank has named the main trends of 2019 in the banking system

VTB and Gazprombank are also included in the top five Deposit market until this year conditions of attraction of means of the population is not corrected. But VTB managed to do it at the end of December. He reduced the rate of ruble deposits by 0.15–0.2 percentage points in retail to 4.75% (investment period of 6-24 months). In addition, VTB has extended the deadline for pronouced “Time of growth” until January 31, retaining rate for the investment in 380 days (5.41% to capitalization) and decreasing for 180 days from 5.78% to 5.54%.

the representatives of the two banks of the top 30 (“Post Bank” and Bank “Zenith”) admitted to “Vedomosti” that will reduce the rate of deposits for next week.

Why falling rates

Bankers argue that to change the yield of ruble deposits makes them drop the key rate. Last time the Central Bank lowered interest rates in mid-December by 0.25 percentage points to 6.25%.

lower interest rates on deposits by the savings Bank reverses the recent decline rate of the Central Bank and expectations of its re-reduction by 25 basis points (b. p.) at the end of February, said chief analyst of Sberbank Mikhail Matovnikov.

Board Member, Director of products and technologies “Mail Bank” Gregory Petrosyan said that his Bank gradually reduces interest rates on deposits followed by another reduction of the key rate of the Central Bank and in line with market trends: “the First decline of 0.1 p. p. occurred on 27 December 2019 (to 5.9% per annum), following a decline of 0.1 p. p. is scheduled on 14 January promoclub happy new year to 5.8% per annum for the term of 9 months.”

“From June 2019 the key rate decreased by 1.5 percentage points, and the market expects another decline by another 0.25 PP in the first quarter. Loan rates quickly recoup these changes: for example, the mortgage in November 2019 they collapsed to a historic low. For deposits, this decline played out only partially: the maximum rate of the 10 largest banks fell by 1.35 percentage points, but many banks are not so quicktro to lower interest rates. Banks that do not have time to maneuver to the end of the year, including through seasonal promotions, bet in the region of 7% per annum, in parallel giving loans at reduced rates, can be in deep loss. Such banks will to reduce rates of ruble deposits at the beginning of the year,” – says in an interview with “Vedomosti” of Matovnikov.

In 2020 the downward trend in rates continues, and the wave of reduction of interest on deposits will be spring, the analyst of BCS Global Markets Elena Tsareva. The possibility of lowering the key rate in the spring large, and therefore, banks will have to respond to the regulator’s decision to lower rates on ruble deposits, agrees CEO Frank RG Yuri Gribanov.

According to the Tsar, in addition to the key rate, the market will monitor the actions of the biggest players: “Sberbank has a fairly large margin, and the Bank can cut rates without fear of outflows. Retail banks implicitly follow the rule to add 1-2 percentage points to the rate of the underlying deposits of the savings Bank and always adjusting their products, focusing on the leader.”

changes in the rates of deposits market leaders will certainly affect the value of the average maximum Deposit rate of the 10 largest banks on the size of the portfolio of borrowed rouble savings of the population, which, according to estimates of the Central Bank, by the end of the year fell to 6,011%. Especially strongly it can be reduced after the date of receipt of seasonal protoklitov major players at the end of January. CB recommends that other banks do not exceed the maximum bet top 10 banks by more than 2 p. p.