Page 87 - RusRPTNov23

8.1.1 Earnings
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In September, the banking sector reported a net profit of RUB296bn, representing an annualized return on equity of approximately 26%.
This figure marks a 16% decrease compared to the previous month's result of RUB353bn. The decline was primarily driven by reduced income from foreign currency revaluation, which amounted to RUB8bn, significantly lower than the RUB106bn recorded in August.
Negative revaluation of long-term foreign currency-denominated securities, particularly in euros and Swiss francs, played a role in this decline, as the US dollar strengthened against these currencies.
Furthermore, in September, the sector witnessed a 4% reduction in core revenues (net interest income and net fee and commission income) compared to August. This decline was mainly attributed to the faster revaluation of liabilities compared to assets, driven by the higher proportion of current accounts and short-term deposits.
On a positive note, the sector saw a slight increase of 18% in its core profit, amounting to RUB264bn, due to reduced provisions, which decreased by 35%.
87 RUSSIA Country Report November 2023 www.intellinews.com