Russia’s banks’ enjoy their best month this year as profits top RUB2 trillion

Russia’s banks’ enjoy their best month this year as profits top RUB2 trillion

Russian banks had their most profitable month so far this year, earning RUB327bn ($3.5bn) and putting the sector well ahead of previous years. / bne IntelliNews

By Ben Aris in Berlin August 22, 2023

In July, the collective net profit of Russian banks surged by 4.1%, reaching RUB327 billion ($3.5bn), their best month so far this year, the Central Bank of Russia (CBR) reported on August 21. (chart)

During the same period, there was a 1.1% growth in retail deposits held by Russian banks, while corporate deposits exhibited a rise of 0.7%, according to the central bank's statement.

Additionally, Russian banks experienced an increase of 2.1% in their corporate loan portfolio over the month, while the retail loan portfolio registered a growth of 1.8%, as reported by the regulatory authority.

Mortgage lending maintained a consistent growth pattern, remaining at 2.5% during this timeframe.

Russian banks are currently reporting their best results in almost a decade on the back of an bump the economy is enjoying from heightened military spending. At the same time the Kremlin is supporting both the sector and the real economy by subsidising mortgage borrowing that is providing profits for banks and construction work and jobs for the population.

Cumulatively, the Russian banking sector has amassed RUB2 trillion of profits in the first seven months of this year, well ahead of all the previous years of the last decade in ruble terms. (chart)

#Russia #banking

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