According to the review of the Expert RA rating agency, the profit of the banking sector is expected to exceed 3 trillion rubles by the end of 2023. However, more than 75 percent of these profits will come from the top 10 banks that generally posted losses in 2022. writes about this TASS.
Analysts state that this will be an absolute record for the market. Despite the interest rate increase, large banks will be able to maintain their net interest margins thanks to maintaining the profitability of their mortgage portfolios through higher consumer loan rates and preferential programs.
Increased foreign exchange revaluation following the weakening of the ruble will also support the sector’s profitability, but the agency considers it unlikely that the ruble will return to the range of 80-85 rubles per US dollar before the end of the year. However, possible new external shocks, including increased sanctions pressure on the financial sector and the manufacturing industry, may affect the institution’s current forecast.
In the first six months of 2023, Russia’s 10 largest banks have already reached record levels of profitability, providing financial results of 1.7 trillion rubles for the entire sector. Banks also increased net interest margins and focused on the marginal retail segment. They also made provisions in the prior year to prevent a negative impact on their 2023 financial results. However, according to agency Expert RA, the capital adequacy standards of the largest banks still remain in sensitive territory, limiting their growth opportunities.
Previously Mishustin in the name Avoid excessive optimism.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.