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Monday, December 5, 2016

During the year, the profit of bankers increased 13.5 times


At a time when ordinary Russians tighter and tighter tightening their belts, saving on food and medicines, banks increase their profits. In seven months, the credit institution earned 13.5 times more than in the same period last year. In January–July of 2016 year their profit was $ 459 billion, while the Central Bank expected to 500 billion rubles by the end of the year. As explained in the regulator to run ahead of the forecast of the Central Bank banks has helped lower contributions to reserves. The Russian economy is slowly but surely recovering, and that means you need to set aside funds for potential losses at banks anymore. However, according to experts, to improve the financial result helped “cleaning” of the banking sector, which is actively held by the Central Bank. Weak players left the market, and strong grabbed a piece of a bigger and meatier.


photo: Gennady Cherkasov

The expression “the rich get richer, the poor get poorer” is about Russia. This popular saying attributed to the seventh US President Andrew Jackson, who, incidentally, fought with the bloated bankers. We have the same yet the opposite is true. Of the credit organization, even in crisis manage to earn, not to mention the fertile times. So, at the end of 2012, their profit was more than 1 trillion roubles, in 2013 — 994 billion rubles. However, with the advent of the next economic crisis, the income of banks “shrunk” in 2014 to 589 billion rubles, in 2015 — up to 192 billion. But in 2016, the Central Bank predicted that the banks can increase the profit up to 500 billion rubles.

However, financial institutions went ahead and in advance fulfilled the plan. “Slowing the growth of reserves on possible losses caused by the stabilization of loan portfolio quality remains a factor in the increase of the financial result of banks”, — explained in the Bank, the net profit of credit organizations in January–July of 2016. In other words, if earlier, domestic banks at the request of the regulator formed a financial “safety cushion” in case of losses, now it’s not necessary. “When the Central Bank sees that macroeconomics is restored in the foreign exchange market is stability, risks are reduced, it starts to soften their reserve policy,” — says “MK”, the Chairman of the Duma Committee on economic policy, innovative development and entrepreneurship Anatoly Aksakov.

So, reserves on possible losses increased since the beginning of the year of 6.3%, or $ 343 billion. For comparison, over the same period in 2015, the growth was 18.6%, or $ 754 billion. In addition, there is a perception that banks have increased profits due to recovery in the lending market. However, experts interviewed by “MK”, does not agree. According to the Vice-President of Association of regional banks of Jan Art, now in most cases to take commercial loans unprofitable. The same situation is with individuals. Ordinary citizens have tempered their appetites. Due to shrinking revenues, they have to save even on food and medicines. New loans they can not afford, but according to the old growing arrears. “The overdue debt on loans to legal entities and individuals in rubles and foreign currency for the first 6 months of 2016 amounted to 2.96 trillion rubles — this is 16.5% more than in the first half of 2015. So to talk about improving the quality of the loan portfolio is still too early only slowed the pace of its deterioration,” — says “MK” member of the chamber of Commerce and industry of Russia Anna Vovk.

Experts the main reason for the profit growth of banks from January to July is called the “cleansing” of the banking sector. “She has a lot of minuses. It discourages business kills competition. However, it gave results: many unprofitable banks left the market and stopped to spoil the General statistics of the banking sector”, — says “MK”, Jan Art.

According to senior analyst of FOREX CLUB group of companies Olena Afanasyeva, from the beginning of 2016 had their licenses revoked in 68 banks. A year earlier, the market left 104 monetary organizations. “In General, over the last 2.5 years, 268 banks have been out of the game, leaving to their more successful and stable colleagues a wide field of activities. Of course, more than others has benefited from the incident TOP-10 financial-credit organizations. However, the rest of the work has become easier” — the expert believes.

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