Page 101 - RusRPTNov23

be comparable to or exceed the results of 2021, when the bank earned 1.246 trillion rubles ($12.5bn).
In early September, Sberbank reported a record profit for the eight months of 2023 according to Russian accounting standards in the amount of 999bn rubles ($10bn).
Earlier, the head of the Bank of Russia, Elvira Nabiullina, stated that the profit of Russian banks at the end of 2023 could reach up to 3 trillion rubles ($30.1bn). According to the Bank of Russia, the profit of the Russian banking sector for the eight months of 2023 reached 2.4 trillion rubles ($24bn), which corresponds to the results of the entire 2021.
8.1.8 Bank news
8.2 Central Bank policy rate
Net profit of VTB Group reaches around $4bn in 9 months. Dmitry Pyanov noted that the results correspond to a return on capital for the first nine months of 26.7%, while the return on capital for the third quarter was 16.3%
On 15 September 2023, the Bank of Russia Board of Directors decided to increase the key rate by 100 basis points to 13% per annum.
Inflationary pressure in the Russian economy remains high. Significant pro-inflationary risks have crystallised, namely the domestic demand growth outpacing the output expansion capacity and the depreciation of the ruble in the summer months. Therefore, it is required to additionally tighten monetary conditions to limit the upward deviation of inflation from the target and return it to 4% in 2024. The return of inflation to the target and its further stabilisation close to 4% also implies that tight monetary conditions will be maintained in the economy for a long period.
The Bank of Russia will make its further decisions on the key rate, taking into account actual and expected inflation movements relative to the target and the progress of the structural transformation of the economy, as well as assessing risks from internal and external conditions and financial markets’ response to these risks. The Bank of Russia will consider the necessity of further key rate increase at its upcoming meetings. According to the updated forecast of the Bank of Russia, annual inflation will stay at 6.0–7.0% in 2023. Given the monetary policy pursued, annual inflation will return to 4% in 2024 and stay close to 4% further on.
Inflation movements. As estimated as of 11 September, annual inflation has increased to 5.5% from 4.3% in July and 5.2% in August. Current inflationary
101 RUSSIA Country Report November 2023 www.intellinews.com