Customers of Russian pawnshops are less likely to buy back pawned items and do not seek to repay loans ahead of schedule. This was reported by the Bank of Russia in the Review of key indicators of microfinance institutions for the third quarter, reviewed by RB.RU.
Author:
https://rb.ru/author/strukova/
Subscribe to RB.RU on Telegram
“The amount of cash from the sale of unclaimed items received during the reporting period to repay the principal debt on loans provided for the quarter amounted to 30 billion rubles. The year-on-year growth is 22%,” says the Central Bank in its materials.
The industry’s net profit doubled as revenue from the sale of unclaimed items increased. At the end of the third quarter it amounted to 6.2 billion rubles. The profitability of the industry as a whole (ROE) increased to 28% and its average level was 9% (a quarter earlier: 24 and 7%, respectively).
At the same time, the total number of borrowers of pawnshops remained close to 2.1 million people, and the loan portfolio of pawnshops reached 66 billion rubles, up 26% over the year former.
The average amount of a pawnshop loan increased due to the high value of collateral and amounted to 18.1 thousand rubles (a quarter earlier – 17.2 thousand rubles and a year earlier – 14.9 thousand rubles).
Author:
Ekaterina Strukova
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
