Page 49 - Russia OUTLOOK 2022

• Banking sector
Russia's banking sector had by far its most profitable year since economic growth fell to zero in 2013 and made record profits across the board.
Over the first eight months of 2021 the bank sector profit amounted to RUB1.7 trillion ($23.5bn) and the sector was on course to earn an estimated RUB1.9 trillion in the full year of 2021.
The outlook for 2022 is even better with experts estimating the full year profits in 2022 should reach RUB2.5 trillion in 2022 according to the CBR as if anything the business environment for banks will improve.
The pandemic proved to be a strong catalyst for the increasing digitisation of the Russian banking sector which is already technologically sophisticated.
High-technology sectors have considerable potential for growth. Russia is among the world leaders for fintech usage – coming in at number three globally, according to EY. Russia’s technology usage in general is very widespread, and 73% of Russians use the internet daily, according to BOFIT’s report.
This change has brought significant cost saving, better risk management and opened up new areas for exploitation by the leading banks.
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