Page 153 - RusRPTAug24

17.8% from 20.4%.
The primary driver of the decline was a reduction in core profit, which fell to 232 billion roubles from 250 billion roubles. This decrease was mainly due to a reduction in net interest income, which dropped by 22 billion roubles, or 5%. This reduction was partly attributed to the timing of accounting for subsidies under government programs, as some banks reported these subsidies with delays.
Non-core income remained largely unchanged at 15 billion roubles. This figure included received dividends of 48 billion roubles, mostly from non-banking subsidiaries, offset by losses from foreign currency transactions, approximately -15 billion roubles, due to negative revaluation of long positions in foreign currencies as the rouble appreciated by 4.7%. Additionally, revaluation of fixed-coupon securities, with expectations of tighter monetary conditions, resulted in approximately -20 billion roubles in losses.
Despite the overall decrease in profitability, the number of profitable banks increased to 248 from 232 in May, bringing the proportion of profitable banks to around 78% of the total, up from 73%. The share of profitable banks in terms of total sector assets remained steady at 98% since the beginning of the year. This increase in the number of profitable banks highlights a resilience in the sector, despite the overall dip in profit margins.
153 RUSSIA Country Report August 2024 www.intellinews.com