MOSCOW, November 26. /TASS/. The population's funds in Russian banks grew by 1.3% in October and since the beginning of the year the growth reached 16.3%, the Bank of Russia said.

"Fixed deposits of the population continue to increase due to the growth of rates. The funds of the population grew by 1.3% (+0.7 trillion rubles). Only ruble balances increased (+768 bln rubles, +1.6%), and funds in foreign currency continued to decrease (-93 bln rubles in ruble equivalent, -2.4%). In total, since the beginning of the year, funds of the population have grown by 7.4 trillion rubles (+16.3%), which is more than twice higher than the result for the same period last year (+3.6 trillion rubles, +9.6%)," the regulator said.

The Bank of Russia also noted the high growth rates of corporate funds in Russian banks, which increased in October by 0.8 trillion rubles ($742.53 bln). Foreign currency funds decreased by 261 bln rubles ($2.42 bln) in ruble equivalent (-2.4%).

The regulator also noted that Russian banks' net profit in October 2024 increased by 4% compared to September and amounted to 348 bln rubles ($3.28 bln).

"The sector's net profit amounted to 348 bln rubles, which is only 4% higher than the September result (336 bln rubles). Return on equity increased slightly to 25.2% from 24.7%. A significant share of net profit still comes from non-core (volatile) income (around 114 bln rubles, at the same level as last month)," the regulator said.

At the same time, in the specified period, banks’ allocations to reserves decreased significantly by 45 bln rubles ($417.62 mln) (-26%), mainly in retail (-23 bln rubles (%213.47 mln), -23%) due to positive IFRS adjustments at individual banks.

At the same time, operating expenses increased by 16 bln rubles ($148.5 mln) (+6%) due to marketing costs and the outpacing growth of the cost of funding (+0.8 p.p.) over the yield (+0.4 p.p.).