Banks set aside RUB 1.1 trillion for additional losses in 2022
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Russian banks created reserves in the amount of 1.1 trillion rubles in 2022. not for projected credit losses on loans to corporate and retail borrowers, but for other assets, follows from the analytical review Bank of Russia. This is almost six times more than in 2021, when the volume of reserves was equal to 186 billion rubles, and more than three and a half times more than in 2020 (305 billion rubles).
The materials of the Central Bank note that these were mainly reserves for interbank loans from non-residents, outstanding payments on Eurobonds and investments in foreign subsidiaries.
The largest amount of funds Russian credit institutions reserved not for expected credit losses in the fourth quarter of 2022 — 334 billion rubles. In the third quarter, 263 billion rubles were reserved, in the second – 261 billion rubles, in the first – 241 billion rubles.
Over the past year, the sector’s financial performance has been uneven, with some banks suffering serious losses, the regulator said. The main losses occurred in the first half of the year – then 89 credit institutions (57% of the banking sector’s assets) were unprofitable. However, by the end of 2022, profitable banks already accounted for about 78% of assets.
The regulator expects that in 2023 “in the absence of new shocks” the banking sector will earn over 1 trillion rubles. Nevertheless, this is significantly lower than the result of 2021 (2.4 trillion rubles). “We estimate that the cost of reserves will still be quite high given the significant volume of restructured loans and the gradual maturation of problems,” the analysis notes.
The fact that the profit of the banking sector in 2023 will be above 1 trillion rubles, February 2 stated Head of the Central Bank Elvira Nabiullina. At the same time, according to her, the funds of the population in credit institutions will increase year by year by more than 7%.
Read more about the forecast of the Bank of Russia in the material “Profit reserves”.
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