Russian Banks Increased Net Profit by Almost 50%

Russian banks in 2021 increased their net profit by 47 per cent, to 2.363 trillion rubles compared to 1.608 trillion rubles of profit in 2020, which follows from the review of the Russian Central Bank, which has predicted earlier that the net profit of banks in 2021 will be a record and will amount to about 2.5 trillion rubles.  

The sector’s performance in 2021 was mainly influenced by the growth of business volumes (net interest and commission income by 15 per cent and 20 per cent), as well as low expenses on reserves after significant reserves in 2020, as follows from the Central Bank’s notes. Operating expenses also increased following business growth (+14 per cent), but slower than core business income.

The net profit of the sector in December 2021 decreased by 30 per cent to 111 billion rubles compared to 159 billion rubles in December 2020. By November 2021 (151 billion rubles of profit), the sector’s result in December decreased by 26 per cent due to the formation of reserves for possible losses at individual large banks and the growth of operating expenses (including pre-holiday advertising and bonus payments).

By the end of 2021, the share of profitable banks in the assets of the sector was 98 per cent, and their number exceeded three hundred. Besides, more than 85 per cent of the profit for 2021 was received by systemically significant credit organizations.

Ru-Main, 31.01.2022
Source: Interfax 

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