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8.1.1 Earnings
The profit of Russian banks declined by almost 10% in the first eight months of 2018. Russian banks received a profit of RUB901bn ($13.2bn) according to Central Bank of Russia (CBR), down 9.6% y/y.
"Without taking them into account, the profit of the banking sector for January-August 2018 amounted to RUB1.2 trillion,” the CBR said in a statement.
In August, Russian banks received a profit of RUB124bn on a monthly basis compared with RUB70bn a year earlier.
8.1.2 Loans
Russian retail loan book growth accelerated in August to 20.7% y/y, from 19.7% in July. Further growth is likely to be supported by expectations of an increase in the interest rate on the back of the CBR’s more hawkish comments in June, seasonal demand and the tighter regulations on consumer loans (coming in September).
Expectations of higher rates and more complications on the debt markets were likely to support corporate loan growth at 4.5% y/y , with growth driven by RUB-denominated loans. Including the effect from a 16% y/y weaker RUB, growth was 8.9% y/y.
61 RUSSIA Country Report October 2018 www.intellinews.com
