MOSCOW, September 7. /TASS/. Profit of Russian banks in 2023 could reach around 2.4 trillion rubles ($23.38 bln), the Bank of Russia said on Wednesday.

"Banks earned 0.8 trillion rubles in profit in the second quarter of 2023 (and 1.7 trillion rubles in the first half of the year) due to increased business volumes, high margins, and currency revaluation. Despite the increase in the key rate and larger reserves for corporate loans, profit is likely to exceed the level of 2021 (2.4 trillion rubles) in 2023," the regulator said.

The Bank of Russia also anticipates that an increase in the key rate will result in a reduction in consumer lending. "We expect the portfolio's annual growth rate to be closer to the lower limit of the range of 13-17%," the regulator said.

The Bank of Russia earlier decided to raise the key rate to 12% from 8.5% per annum at an extraordinary meeting of the Board of Directors. "The Bank of Russia Board of Directors decided to increase the key rate by 350 basis points to 12% per annum from 15 August 2023. The decision is aimed at limiting price stability risks," the statement said. The next meeting of the Bank of Russia's Board of Directors on the key rate level, is scheduled for September 15, 2023.