Page 122 - RusRPTApr23

8.1.1 Earnings
The net profit of the sector in February amounted to RUB293bn rubles,
(return on capital in annual terms - more than 29%), which is 14% higher than in January (258bn rubles). Result was supported by a positive currency revaluation on the back of weakening of the ruble (+RUB140bn rubles after -RUB33bn rubles in January) .
In two months of 2023, the sector earned RUB551bn, however excluding currency revaluation, the result would be ~RUB440bn. Also, to assess the profitability of the sector in the medium term horizon must take into account significant negative previous year profit adjustments: cumulatively in January-February banks reflected them for ~RUB280bn rubles. (with the exception of technical accounting adjustments).
The number of profitable banks fell to 246 in February (75% of total) compared to 263 in January 2023 years (81%). The share of profitable banks in the sector's assets decreased up to 94 from 98%. Based on the results of two months, the number of profitable banks grew to 264 (81% of the total), their share in sector assets decreased to 94%.
The combined net profit of Russian banks increased by 14% on the month to RUB293bn in February, the central bank said in a research note late on March 22.
"In February, the sector’s net profit amounted to RUB293bn with a y/y return on capital of over 29%, which is a 14% rise on the month," the regulator said.
The central bank attributed the increase to positive currency revaluation on the back of the weakening, which amounted to RUB140bn .
In January–February, the sector’s net profit amounted to RUB551bn , or around RUB440bn excluding currency revaluation.
The number of banks that had a profit fell to 246, or 94% of the total, in February from 263, or 98% of the total, in January.
Russian banks’ retail deposits grew by 2% on the month, while corporate deposits increased by 1.1% in February, the central bank said.
The corporate loan portfolio of Russian banks increased by 1.5% on the month, and the retail loan portfolio rose by 1%, the regulator said.
Mortgage lending growth accelerated to 1.5% in February from 0.6% seen in January.
122 RUSSIA Country Report Russia April 2023 www.intellinews.com