Every Tenth Corporate Loan in the rf Is Problematic

russia’s banking sector is facing a further increase in problem loans amid an economic slowdown.

In the corporate segment, the share of problem loans rose to 10.4 % of the portfolio at the end of the second quarter of 2025. Their absolute volume reached $111.9 billion, having added $8.6 billion in just three months. The cost of credit risk for companies nearly doubled during the quarter.

The most significant deterioration was recorded in real estate, metallurgy, and coal mining, where high interest rates are putting pressure on businesses with falling revenues. Banks are increasingly resorting to “risky restructuring” to defer recognition of losses.

The situation is also reflected in the banks themselves: 48 out of the 100 largest financial institutions in the rf saw worsening of their financial performance in the first half of the year. Five out of the 13 systemically important banks recorded a decline of 20 % or more in net profit.

Despite public denials by the Central Bank, in July the ministry of finance of the rf was forced to provide covert support to state-owned banks in the amount of $6.15 billion from the National Wealth Fund. The funds were directed to VTB and Sberbank in the form of subordinated loans and deposits, which in reality was recapitalization, indicating much deeper problems in the sector.