Page 68 - RusRPTDec23

8.0 Financial & capital markets 8.1 Bank sector overview
Russia’s banking sector remains highly profitable and well provisioned. The CBR has been concerned about rising unsecured consumer borrowing, but in November new retail borrowing fell off and was flat.
The CBR has also been concerned with booming mortgage borrowing, but a series of rate hikes and a hike in minimum deposit rates has started to cool borrowing.
8.1.1 Earnings
In October, the net profit amounted to 256 billion rubles, with an annualized return on equity of approximately 22%. This figure is 13% lower than the result in September, which was 296 billion rubles. The decline in profit can be attributed to negative currency revaluation (-66 billion rubles) due to the strengthening of the ruble by 4.5% (in September, there was a positive revaluation of 18 billion rubles). Additionally, there was a negative revaluation of securities (~8 billion rubles) due to rising market interest rates. Furthermore, banks recognized losses from the revaluation of securities amounting to
68 RUSSIA Country Report December 2023 www.intellinews.com