The Central Bank reported a 14% increase in bank profits in February due to currency revaluation

The net profit of Russian banks in February amounted to 293 billion rubles, which is 14% higher than in January (258 billion rubles). Profit growth was affected by currency revaluation amid the weakening of the ruble, follows from the report (.pdf) Bank of Russia.

In annual terms, the profit of the financial sector in February increased by 29%, the regulator said. Over the two months of this year, Russian banks earned 551 billion rubles, excluding currency revaluation – 440 billion rubles. The number of profitable banks in February fell to 246 (75% of the total) from 263 in January. In the sector’s assets, the share of profitable banks decreased in February from 98% to 94%. At the same time, following the results of two months, the number of profitable banks increased to 264 (81% of the total).

Also, the Bank of Russia reported in the report on the growth of the stock of ruble liquidity in February by 1 trillion rubles. The Central Bank said that this was facilitated by a significant influx of client funds and the issuance of securities, as well as the attraction of funds from the regulator against non-market collateral.

Citizens’ deposits, excluding escrow accounts, grew by 2% in February, to RUB 711 billion. At the same time, the funds of legal entities increased in February by 504 billion rubles. (+1.1%), mostly due to oil and gas companies, the Bank of Russia said. The credit portfolio of the companies grew during the reporting period by 877 billion rubles. (+1.5%), mainly due to loans to finance the activities of companies from the transport and oil and gas industries. Consumer loans rose by 0.5% in February, maintaining the dynamics of the previous two months due to banks maintaining a tight lending policy and the need to comply with macroprudential limits that limit the issuance of high-risk loans, the Central Bank noted.

The Bank of Russia reported that the volume of the mortgage portfolio in February increased to 14.4 trillion rubles, by 1.5%, but the growth rate still remains below the monthly average for 2021 (+2.3%). The issuance of market mortgages increased by about 40%, to 210 billion rubles. in February from 152 billion rubles. in January, the regulator added.

Erdni Kagaltynov