Combined net profit of Russian banks soars to RUB587bn in January-March as sector continues to recover

Combined net profit of Russian banks soars to RUB587bn in January-March as sector continues to recover

The combined net profit of Russian banks soars to RUB587bn rubles in January –March, on a par with 2017 but well ahead of 2016 / bne IntelliNews

By bne IntelliNews April 16, 2019

The combined net profit of Russian banks soared to RUB587bn in January-March from RUB353bn in the same period of 2018, the central bank said in a report on April 16.

The level of banking sector profit in March was almost the same as a year earlier when the aggregate profit of the sector was RUB236bn, just RUB2bn more than this year for the month of March. However, the profit this year was twice the level of profit in 2017 and ten-times the level of profit in 2016.

The profit for the sector in February this year was RUB89, twice the level of a year earlier but on a par with the level of profit in 2017.

In 2018 the sector’s profit was RUB1.3 trillion, but if the losses from the impaired banks that the CBR took over in 2017 are counted out then the sector’s profit would be RUB1.9 trillion. The Russian banking sector is returning to health and is expected to continue to recover this year. The cumulative profit of the banking sector this year is already well ahead of any of the last four years.

The Central Bank of Russia (CBR) report said that 373 banks posted a net profit of RUB654bn and 93 a net loss of RUB67bn.

Retail lending rose 4.3% in the period, while corporate lending increased 2.3%.

Retail deposits with banks rose 0.8% on the year in January-March and 0.6% on the year to RUB28.2 trillion in March.

#Russia #bneChart

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