Banks’ profits drop 41% in 2014

January 23, 2015. The overall profits of Russian banks plummeted by 40.7% in 2014 and amounted to 589bn RUR, the Central Bank reports.

The Central Bank points out that the drop in profits was mainly brought about by the need to increase the possible loss reserves: these rose by 1.203 trillion RUR, or 42.2%.

The banks’ assets grew by 35.2% (if one makes adjustments for the changes in the exchange rate, the increase was 18.3%). The amount of loans issued to non-financial organizations went up by 31.3%, that of loans issued to private individuals rose by 13.8%, and the total loan book increased by 25.9%.

The amount of money deposited with banks by customers went up by 25.5%, primarily due to the fact that legal entities’ deposits increased by 56.9% (excluding lending institutions’ deposits). The amount of money in private individuals’ deposits increased by 9.4% nominally, yet, if one makes adjustments for the changes in the exchange rate, the increase was 2.5%.


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