UBRD’s Deposits Up 12%

20 December 2016 (17:07)

UrBC, Yekaterinburg, December 20, 2016. The amount of money deposited by private individuals with the Ural Bank for Reconstruction & Development (UBRD) increased by 12% against December 2015, the bank’s press service reports.

As of December 1, 2016, the entire deposit portfolio reached 147bn RUR, which is, on the whole, a faster growth than the country’s average.

According to UBRD Debit Transactions Director Olga Aksenova, private individuals’ deposits grew a bit a slower this year than in the year 2015, for a number of reasons. Firstly, this year’s market trend for interest rates on deposits has been a downward one, so that the average interest rate offered by the country’s top ten banks amounted to 8.6% by the end of November. The market players are currently offering annual interest rates that come to 8% to 9%, and the UBRD’s offers go along the same lines. Secondly, people’s actual disposable incomes shrank, so those with moderate incomes are forced to use their savings to pay their bills, which means banks now have increasingly fewer customers with deposits under 700,000 RUR. The share of such customers at the UBRD has dropped by 4% since the start of the year, for example.

‘As interest rates on deposits are getting smaller, customers have a greater incentive to open longer-term deposits. For one, the number of those who settled for our Savings Deposit (where an interest rate is fixed for a longer period) increased by 2.5 times. Also, people are getting increasingly more interested in other savings options such as savings certificates: the bank’s savings certificate portfolio exceeded 5bn RUR in early December, thus making the UBRD one of the three largest players on this market,’ Aksenova said.

Other materials on the topic::