Russian Banks Made Over a Trillion-Ruble Profit in 2012

Last year Russian banks earned more than a trillion-ruble net profit, informs RIA Novosti quoting First Deputy Chairman of the Central Bank Alexei Simanovsky. According to him, this index has become a record one for the Russian financial system.

Last year Russian banks earned more than a trillion-ruble net profit, informs RIA Novosti quoting First Deputy Chairman of the Central Bank Alexei Simanovsky. According to him, this index has become a record one for the Russian financial system.

Another deputy chairman of the Bank of Russia Mikhail Sukhov told the news agency that the financial institutions should channel at least half of their profit for recapitalization so as to maintain lending. He also added that good financial results enable banks to expect favorable conditions for attracting capital.

In 2011 Russian banks also set a profit record when the index rose to 848 billion rubles.

Some time ago Alexei Simanovsky said that over the last two years Russian banks had recapitalized 50-60 percent of their profits. During the crisis years of 2008-2009 the index was 86 percent. The Deputy Chairman of the Central Bank noted that if banks had kept up the pace, then by 2011-2012 they would have accumulated 460 billion rubles of supplementary capital, which would secure a year of “quiet life”.

Russia ’s largest bank – Sberbank – has already announced its profit in 2012. Last year this financial institution earned 350 billion rubles, a record profit in its history. Thus, Sberbank ensured more than a third of Russian banking system’s profit.

On January 17th it became known that the pevious year Russian banks had increased the number of loans granted to individuals by 39.3 percent, while to businesses – by 12.7 percent. The volume of deposits in Russian financial institutions had grown by 19.9 percent, whereas of funds obtained from non-financial institutions – by 11.9 percent.