Page 92 - RusRPTSept23

8.1.1 Earnings
In July, the collective net profit of Russian banks surged by 4.1%,
reaching RUB327bn ($3.5bn), their best month so far this year, the Central Bank of Russia (CBR) reported on August 21.
The sector's net profit for July amounted to 327bn rubles, with a capital yield of about 30% annually, which is consistent with the June result (314bn rubles). Since the beginning of the year, the sector has generated 2.0 trillion rubles in profit.
Similar to June, a significant factor contributing to profit growth was the income from the revaluation of foreign currency (93bn rubles G, compared to 147bn rubles in June). This was driven by the weakening ruble exchange rate (by 4% in July and 7% in June) and the continued long foreign currency position held by several banks.
Furthermore, profits were bolstered by a 9% increase in Net Interest Income (NII) and a 3% increase in Net Fee and Commission Income (NFCI). Additionally, there was a decrease in reserve expenses (37bn rubles) and operational expenses (16bn rubles). As a result, the core profit I increased to 224bn rubles from 131bn rubles in June.
The number of profitable banks grew to 265 in July (82% of the total) compared to 245 in June (75%). Over the course of the first 7 months of 2023, there were 274 such banks (85%), accounting for 99% of the sector's assets.
RUSSIA Country Report September 2023 www.intellinews.com