Net profit of the Russian banking sector for five months amounted to 1.4 trillion rubles

In May, the net profit of the Russian banking sector amounted to 273 billion rubles, since the beginning of this year, the sector has earned 1.4 trillion rubles, should from the information and analytical material of the Bank of Russia “On the development of the banking sector of the Russian Federation in May 2023”.

“Net profit of the sector in May amounted to 273 billion rubles. (return on capital in annual terms – 25.9%), which is almost a quarter higher than the result of April (224 billion rubles). For the five months of 2023, the sector has already earned 1.4 trillion rubles,” the regulator’s materials say.

The profit of this sector, explains the Central Bank, was supported by lower deductions to reserves and the growth of basic income against the background of business expansion. At the same time, according to the materials of the Bank of Russia, banks’ income from currency revaluation has significantly decreased (from 82 billion rubles in April to 16 billion rubles in May), since the ruble exchange rate remained practically unchanged in May.

At the end of May, Vedomosti wrotethat Russian banks successfully reported for the first quarter of 2023. They showed a record first three months in terms of profit, earning 881 billion rubles. according to Russian Accounting Standards (RAS). There are 327 credit institutions in Russia. 12 out of 13 systemically important banks (except Promsvyazbank) showed financial results for the first three months in a truncated, but still slightly more detailed format than last year.

In April, at the conference of the NKR rating agency, Deputy Chairman of the Central Bank of the Russian Federation Olga Polyakova statedthat the first months of 2023 give the regulator reason to believe that by the end of the year the banking sector can earn 1.9 trillion rubles. “or even more, comparable to 2021 earnings.” Two years ago, Russian banks earned a record 2.37 trillion rubles.