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Russian Banks’ profit in March rises by 14% against February, reaching $3.01 bln

Allocations to reserves in the Russian banking sector rose by 48 bln rubles ($591.8 mln) in March

MOSCOW, April 18. /TASS/. The Russian banking sector’s profit increased by 14% in March compared to February, reaching 244 bln rubles ($3.01 bln), according to data released by the Bank of Russia.

"Net profit for the sector amounted to 244 bln rubles, which is 14% higher than February’s result of 214 bln rubles. Return on equity rose to 16% from 14.3%. Profitability continues to be affected by foreign exchange revaluation losses, although these losses were significantly reduced (-30 bln rubles in March versus -146 bln rubles in February), due to the ruble strengthening against the dollar to a lesser extent than in February (+5% after +12%)," the Bank of Russia noted.

Allocations to reserves in the Russian banking sector rose by 48 bln rubles ($591.8 mln) in March, representing a 33% increase, mainly due to certain banks recognizing losses on other assets, including unresolved disputes, according to the Bank of Russia. Operational expenses across several categories grew by a total of 30 bln rubles ($369.8 mln) (+9%), the regulator added.

The regulator projects that Russian banks’ net profit could reach 3-3.5 trillion rubles ($36.98-43.1 bln) in 2025 and 3.2-3.8 trillion rubles ($39.4-46.8 bln) in 2026.