The Central Bank expects bank profits of 2.9–3 trillion rubles at the end of the year – Kommersant

At the end of 2023, the Central Bank expects the profit of Russian banks to be 2.9–3 trillion rubles. This was announced by Deputy Chairman of the Central Bank Olga Polyakova on the sidelines of the Finopolis forum. The net profit of the banking sector based on the results of the first three quarters has already reached 2.7 trillion rubles.

“I think that the profit will approach somewhere around 2.9 trillion rubles, approximately 2.9–3 trillion rubles,” Ms. Polyakova said (quoted by Prime). “Don’t forget that from January 1, the relaxations cease to apply, and those banks that continue to use them must create additional reserves and take all other actions in order to leave these relaxations in the outgoing year,” noted the deputy chairman of the Bank of Russia.

According to Olga Polyakova, the increase in the key rate does not affect the dynamics of net interest income – the Central Bank has not recorded a slowdown in the growth of net interest income in the banking sector. At the same time, she noted that the additional creation of reserves by them in the last, fourth quarter could have an impact on the banks’ profits.

In September, the net profit of the banking sector amounted to 296 billion rubles. (return on capital is about 26% in annual terms), this is 16% less than in August. At the end of September, 77% of credit institutions were profitable, although in August their share was 81%. In August, the Central Bank raised the key rate to 12%, in September – to 13%, in October – to 15%.

In 2022, the Russian banking sector, against the backdrop of sanctions, made a profit of 203 billion rubles. In 2021, Russian banks earned 2.4 trillion rubles.

Read more about the consequences of raising the rate in the material “Banks are holding deposits”.

Anastasia Larina