Page 73 - RusRPTApr20

impact on banks from the continued coronavirus spread, including allowing banks to temporarily maintain debt service and financial position assessments for borrowers from the tourism and transportation sectors - where their loans have been restructured or financial positions have deteriorated as a result of coronavirus -, which means banks may not book additional provisions against these borrowers. The CBR also decreased risk-weights on exposures to pharmaceutical companies.
Banking groups need to comply with capital buffers on a consolidated basis at the end of each quarter. The latest consolidated ratios available on the CBR's website were as at end-2019, when all systemically-important banks (SIBs; excluding Promsvyazbank, which did not disclose these ratios) complied with minimum requirements including buffers.
8.1.1 Earnings
Pre-crisis profits in February were down only slightly to RUB170bn to bring the cumulative profits in the first two months to RUB393bn, which was ahead of the RUB350bn from the first two months of 2019 and well ahead of all preceding years back to 2014. However, it is already clear that with an economic contraction of between1% and 5% on the way this will be a difficult year for banks.
Excluding the CBR-managed bad bank's result, the sector reported a RUB223bn net profit in January (annualised return on average equity (ROAE) of 21%).
The CBR said in the middle of March that it doesn’t see any danger to the banking system from the multiple crises as the banks have plenty of liquidity.
73 RUSSIA Country Report April 2020 www.intellinews.com