Page 95 - RusRPTOct22

8.1.1 Earnings
Russia’s banking sector will be loss-making this year, VTB Chief Executive Officer Andrey Kostin said at the Eastern Economic Forum (EEF) on September 7, adding that the sector might return to profit in 2023.
"I think the banking sector will be definitely loss-making this year. However, next year we expect it to be profitable, not as profitable as in 2021, but we believe half of profit may be reached," he said as cited by Tass.
The Central Bank’s First Deputy Governor Dmitry Tulin also speaking at the forum said Russia’s banking sector sustained losses of RUB1.5 trillion ($25bn) in January-June 2022 following the imposition of sanctions on the sector – the first losses recorded by the sector in seven years.
Russia’s banking sector posted a record net profit of RUB2.4 trillion ($40bn) in 2021, its strongest year since the oil price crisis of 2014. He added the banks’ assets were RUB7 trillion ($116bn) as of January 1.
The Central Bank of Russia (CBR) stopped reporting banking sector results, including the profitability of the sector, shortly after Russia invaded Ukraine in February.
The Russian banking sector made an aggregate net loss of RUB1.5 trillion ($24bn) in 1H22, out of which RUB 1 trillion came from foreign currency transactions, First Deputy Chairman of the Central Bank of Russia
95 RUSSIA Country Report October 2022 www.intellinews.com