Page 88 - RusRPTNov23

The number of profitable banks in the sector saw a slight decrease compared to August, with 248 banks (77% of the total) reporting profits, down from 263 banks (81%) in the previous month. Over the first nine months of 2023, there were 282 profitable banks, accounting for 87% of the total, and they represented 99% of the sector's assets.
Year-to-date, the sector has generated a total profit of 2.7 trillion rubles. However, it's important to note that 0.6 trillion rubles of this profit can be attributed to foreign currency revaluation. Additionally, banks have reflected a negative revaluation of securities, amounting to 0.3 trillion rubles, in their capital (bypassing the profit statement).
Despite the banking sector reporting a profit of RUB296bn, the balance sheet capital increased by RUB152bn, reaching a total of RUB13.6 trillion.
The difference was primarily influenced by negative revaluation of securities, valued through other comprehensive income (approximately 112bn rubles), and dividend payments (around 21bn rubles).
According to preliminary results for September, the Capital Adequacy Ratio (CAR) or Н1.0 saw a slight decrease of 0.04 percentage points, settling at 12.05%. This decrease was attributed to the faster growth of Risk-Weighted Assets (RWAs) at 2.3% compared to capital growth at 1.9%.
The increase in RWAs was mainly driven by the expansion of the loan portfolio and a significant rise in macro-prudential add-ons due to stricter macro-prudential regulation implemented from September 1, 2023. The growth in regulatory capital in September was primarily the result of monthly profits.
Overall, the capital buffer remained largely unchanged in September, standing at approximately 6.8 trillion rubles.
88 RUSSIA Country Report November 2023 www.intellinews.com