The Central Bank predicts that the net profit of Russian banks at the end of 2023 will be between 3.2 and 3.4 trillion rubles. Thus, the regulator’s expectations for the sector have increased. At the beginning of last month, Central Bank Vice President Olga Polyakova gave an estimate of between 2.9 and 3 trillion rubles.
In the third quarter, the net profit of the banking sector reached 976 billion rubles. In just nine months, banks made 2.67 trillion rubles of profits compared to 0.8 trillion losses in the same period last year.
The main growth drivers of the Central Bank are the growth of core income in a context of credit expansion, income from currency revaluation after a significant loss in 2022, and low reserve costs.
Compared with the second quarter, the net profit growth of the banking sector in the third quarter amounted to 17%. In July-September, banks increased their corporate loan portfolio by 5.9%, or 3.9 trillion rubles, which became the main growth factor during this period.
Reserve expenses in the third quarter increased by 7%, and income from currency revaluation, transactions with precious metals and derivative financial instruments decreased from 333 billion rubles to 299 billion rubles.
Author:
Natalia Gormaleva
Source: RB
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