Page 20 - bneIntelliNews monthly country report Russia May 2024

among Western banks in Russia, earning $149mn and paying $53mn in taxes in 2023, according to data from the Kyiv School of Economics based on figures from the Russian Central Bank. JPMorgan, meanwhile, earned $35mn and paid $6.8mn in taxes while dealing with legal challenges from its former Russian partner, VTB.
The imposition of sanctions on most of the Russian financial sector, which includes denying access to the SWIFT international payment system, has inadvertently made international banks critical financial conduits between Moscow and the West. This role has significantly boosted RBI’s net fee and commission income in Russia, which jumped from €420mn in 2021 to €1.2bn in 2023.
RBI also has a subsidiary in Ukraine where it plays a similar role and earns substantial fees, facilitating transfers of money in and out of the country.
A senior Russian banking executive commented on the situation, told the FT: "It is not only in RBI’s interest to stay in Russia. The [Russian central bank] will do everything it can to not let them go because there are few non-sanctioned banks through which Russia can receive and send SWIFT payments."
European banks increase profit and tax in Russia
Bank
Country
2021 Profit (€mn)
2023 Profit (€mn)
2021 Tax (€mn)
2023 Tax (€mn)
Raiffeisen Bank International
Austria
591
1,805
117
464
UniCredit
Italy
209
658
44
154
OTP
Hungary
128
338
26
90
Intesa Sanpaolo
Italy
7
138
2
27
ING Groep
Netherlands
3
151
-7
20
Commerzbank
Germany
15
51
3
8
Deutsche Bank
Germany
26
40
6
16
Source: Company filings, FT
2.10 Russian business and consumer confidence
The Bank of Russia's business climate indicator reached its highest level in more than ten years in March (and remained near its maximum level in April). Respondents note strong demand for their goods and services, as well as high investment activity in 1Q24.
20 RUSSIA Country Report May 2024 www.intellinews.com