Russian banks earned profit of 635 bln rubles ($10.1 bln) in January – September 2016, the Central Bank said on Monday in its banking sector growth dynamics review.
Profit of banks skyrocketed five times year-on-year. Banks earned just 127 bln rubles ($2 bln) in nine months of 2015.
Profit of banks is influenced by slowdown of risk growth in dynamics of provisions for potential losses, the regulator said. Provisions grew by 6.6% or by 358 bln rubles ($5.7 bln) from the beginning of 2016 vs. 23% or 963 bln rubles ($15.3 bln) growth in the like period of the last year.
Lending business of Russian banks contracted by 0.9% in par value in September 2016, the Central Bank said.
Loans to non-financial organizations declined 1.3% in September. Retail loans continued demonstrating positive dynamics and rose by 0.3%.