Increase in Russian Deposits in Banks Reaches 6% According to VTB
VTB Reports Significant Growth in Ruble Deposits and Ruble Investments
VTB, one of Russia's largest banks, has reported a notable increase in deposits and investments in national currency. According to the bank's latest figures, deposits in rubles accounted for nearly 90% of the overall market growth in rubles, amounting to over 600 billion rubles.
The growth in ruble savings at VTB is a significant factor in the overall market growth in rubles, as reported by the bank. As of the beginning of the year, the volume of retail customer liabilities at VTB reached 11.2 trillion rubles. Of this, over 10.6 trillion rubles were ruble investments.
Alexei Okhorzin, Senior Vice President of VTB, stated that the bank sees a trend towards a shift towards investment strategies capable of providing higher long-term returns, given the easing of monetary policy. Okhorzin's statement indicates that VTB anticipates a trend of investors shifting towards strategies offering higher long-term returns.
Okhorzin also noted that Russians continue to keep funds in deposits, with the returns from these deposits still exceeding inflation. This trend is likely contributing to the growth in ruble deposits and investments at VTB.
The current long-term investment strategies in Russia are influenced by several factors, including the evolving monetary policy environment, inflation trends, geopolitical risks, and structural economic factors. Regarding deposit rates in national currency at major banks such as VTB, these factors shape the offered rates and investor behavior.
The Bank of Russia implemented a significant cut in its key interest rate by 200 basis points to 18.00% per annum as of July 2025, reflecting a reduction in inflationary pressures and slowing domestic demand. Despite cuts, the key rate remains relatively high compared to many global peers, indicating a tight monetary policy expected to ease gradually over 2025–2026.
The forecast is for the key rate to average 18.8–19.6% in 2025 and decline further to 12.0–13.0% in 2026 as inflation returns to targeted levels (around 4% in 2026). This signals a longer horizon of elevated but easing financing costs impacting long-term projects and deposit yields.
Inflation has been declining, with annual inflation falling to 9.2% in July 2025 from higher levels earlier in the year, which supports continued interest rate normalization. Russian equity and investment outlooks consider prolonged high interest rates as a discounting factor on capital-intensive, long-payback projects common in Russia. As rates normalize, the valuations of these long-term assets and investment projects are expected to improve, potentially benefiting companies and investors with long-term horizons.
Geopolitical risks and sanctions continue to influence Russia's economy and ruble stability, causing some capital controls and state support measures that can indirectly affect deposit rates and overall investment attractiveness. However, high domestic interest rates keep ruble assets relatively attractive to Russian households and companies despite external pressures.
VTB Bank, as one of the largest Russian state-associated banks, typically aligns deposit rates with the key rate trends. Given the current key rate environment, deposit rates in national currency at VTB are relatively high compared to many international standards but are expected to gradually adjust downwards in line with monetary policy easing while still compensating for inflation risk.
In conclusion, long-term investment strategies in Russia are adapting to a gradually easing but still relatively high interest rate environment influenced by disinflationary trends and geopolitical challenges. Deposits in national currency at banks like VTB reflect these tight monetary conditions, offering relatively high rates currently, with expectations of a moderate downward adjustment in the medium term as inflation normalizes and economic stability improves.
In the context of VTB Bank's significant growth in ruble deposits and investments, the senior vice president, Alexei Okhorzin, highlighted a trend towards investment strategies capable of providing higher long-term returns, given the easing of monetary policy (finance). This shift in strategy is driven by factors such as the Bank of Russia's interest rate normalization, inflation trends, geopolitical risks, and structural economic factors, all of which influence long-term personal-finance decisions. Furthermore, despite a forecast for the key rate to decline, ruble deposit yields are expected to remain relatively high compared to many global peers, attracting Russian households and companies to keep funds in deposits (business).
