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Profit of Russian microfinance organizations in 2024 may rise by 39% — experts

According to the Bank of Russia, in 2022, the profit of microfinance organizations also increased by 39% year-on-year, and by 40% - in 2023

MOSCOW, May 14. /TASS/. Rapid adaption of microfinance organizations while meeting external and regulatory requirements can result in a 39% rise in industry revenues by 2024. According to documents from the Expert RA rating agency, tightening the maximum daily interest rate would have raised revenues by only 5%.

"Until the end of 2024, no regulatory innovations are expected in the microfinance industry, with the exception of modifications in reserve levels for potential loan losses and macroprudential limit factors. The high adaptability of the microfinance organizations market while keeping external and regulatory requirements will decide a growth in the issuance of microloans by 25% and profits by 39% in 2024," the statement said.

According to the Bank of Russia, in 2022, the profit of microfinance organizations also increased by 39% year-on-year, and by 40% - in 2023.