Net profit of the banking sector in September decreased by 20%

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AK&M 25 October 2021 18:57

The net profit of the banking sector in September amounted to 196 billion rubles. This is almost 20% lower than in August. The number of profitable banks for the month decreased to 244 from 259, according to the materials of the Bank of Russia.

The regulator explains the decline in profit, including a negative revaluation of securities (mainly OFZ) against the background of an increase in the key rate.

For 9 months, the net profit of banks increased by 65% to 1.9 trillion rubles year-on-year. The sector's profit growth was primarily provided by restrained spending on reserves (almost three times lower than in the first 9 months of 2020). 

In addition, one-time factors also had an impact, including the partial release of reserves as a result of the sale of distressed debt of one large borrower in July. The profit was also supported by net interest and commission income, which for 9 months of 2021, against the background of active lending, increased by 15 and 23%, respectively.

The share of profitable banks in the assets of the sector for 9 months amounted to 99%. About 85% of the profit for 9 months of 2021 was received by systemically significant credit institutions.