Page 91 - Russia OUTLOOK 2023

• Banking sector

Russia's banking sector had by far its most profitable year in 2021 since
economic growth fell to zero in 2013, and made record profits across the
board. Those profits disappeared in 2022.

The situation in the banking sector is uncertain, as the CBR stopped reporting
bank sector results in February 2022; however, Russia’s second-largest bank
VTB does not anticipate losses in the second half of 2022, though the
bank will most likely post full-year loss, chief executive officer of Russia’s
second-biggest lender Andrey Kostin said on the sidelines of the 15th Verona
Eurasian Economic Forum in Baku in November.

Earlier, VTB CEO said he projected notable profit in 2023, adding that no
dividend payments for 2022 were expected. Net profit of VTB Group under
International Financial Reporting Standards (IFRS) soared 4.3-fold in 2021
compared with the previous year to RUB327bn.

Russia's biggest lender Sberbank has become sustainably profitable and
expects to remain profitable in 2023, First Deputy CEO Alexander
Vedyakhin said at a conference on Wednesday. "Sber has become sustainably
profitable. We are on this stable trajectory, and I am sure that unless, God
forbid, something happens, we will maintain stable profitability next year,"
Vedyakhin said. Sberbank's net profit in November grew by 22.7% to
RUB124.7bn under Russian Accounting Standards, but for January-November
the profit slid by 84.8% to RUB174.8bn.

91 Russia OUTLOOK 2022 www.intellinews.com