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Due to the strengthening of the ruble profitability of banking assets fell to 0.9% 05.08.2016 at 15:04

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the profitability of the banking assets in Russia showed another record — in the first half it did not exceed 1%. But this modest growth is obtained mainly due to the reduction of allocations for possible losses, according to the data of the Gaidar Institute. Private banks are teetering on the verge of zero profitability, the profit is mainly state-owned banks.

In the first half of the banking sector profit reached 360 billion rubles. It is seven times more than the previous year, during the same period in 2015, the banking system received only 51 billion rubles. net profit. "Despite the significant growth in profit of the banking sector, it remains still quite modest compared to pre-crisis levels", — says Mikhail Khromov, head of the laboratory for financial studies Gaidar Institute.

the majority of the semi-annual profit was shown in June 2016: 126 billion rubles, i.e. more than a third of all profits in six months. The previous volume, the result was recorded in June 2014, when banks earned 114 billion.

however, even this record volume of monthly profit is not too impressive from the point of view of profitability of Bank assets (ROA — return on assets). In June, it amounted to only 1.9% in annual terms, said the expert.

the overall profitability of Bank assets in the first half was only 0.9% in annual terms, that is even worse than 2014.

Although 2014 is the most negative in terms of doing business (the annexation of Crimea and the sharp deterioration of relations with Western partners), then until December the profitability of the banking assets has remained at a much higher level of about 1.5% in annual terms. In 2011-2012, the corresponding figure was less than 2%.

This means that now the profitability of core banking operations at least two times lower than its normal level characteristic of the periods of the sustainable development of the banking sector, said Khromov.

"on the other hand, low rate of return on assets indicates the stabilization of the banking sector. Banks are no longer handing out right and left expensive loans to the corporate sector, especially small and medium businesses, reducing the percentage of default, stabilizes the business, does not provoke the growth of prices for goods and services," explains "Gazete.Ru" one of the bankers.

Earned on the decline

But the profitability of 0.9% was possible only due to the reduction of deductions for possible losses on demand by the Central Bank on the background of lower overall risk. So, for the first half of 2016 the growth of banking reserves for possible losses on loans and other assets amounted to 237 billion rubles. It is even less than in the corresponding period of 2013 (RUB 260 billion), not to mention 2014 (399 RUB bn) and 2015 (571 bn).

"Reduction of deductions in reserves reflects a slowdown in formation of new bad loans. However, their accumulated volume is still very high, and it is not reflected in the arrears in full (that is, reserves for them are not created or created only in part)," — said Denis Poryvai, analyst of Raiffeisenbank.

According to various estimates, the size of the hidden bad loans is 15% of all loans, that is about 4.4 trillion rubles To cover such a volume of bad loans reserves banks have no capital, so there is a gradual coating on a rolling net profit, the expert adds.

the Limiting factor for the growth of profitability was the reduction of one nominal value — net income from revaluation of accounts in foreign currency.

In the first half of 2016 it was negative (-41 bn), while a year earlier over the same period, banks have earned on the decrease in ruble exchange rates 52 billion due to an increase of the value of the national currency.

In January – June, the ruble strengthened against the U.S. dollar by 12%, and Euro by 10.5%. Over the same period in 2015, the exchange rate of the ruble against the dollar almost did not change (strengthen to 0.7%), whereas the Euro, the ruble has risen by 8.8%.

due to the proximity to power

as for the banks ' profits from regular banking operations (that is, less increase in provisions for possible losses net income from revaluation of foreign currency accounts), its growth was quite modest: for the six months for regular transactions, banks earned 638 billion rubles, which is only 12.6% more than in the first half of 2015 (566 billion).

however, as noted in the report, the profit continues to be concentrated primarily in Sberbank and other state banks. Thus, in the first half profit of Sberbank reached 299 billion rubles — more than 80% of the profits of the entire banking sector. That is Sberbank, which accounts for less than 30% of the total assets of the banking sector received five times more profit than all other banks.

Total of state-owned banks received 356 bln RUB net profit of 360 billion for the whole banking sector. This suggests that private banks total balance on the verge of zero profitability.

At the end of 2015, the profit of Sberbank (RUB 282 billion) also exceeded the profit of the entire banking sector (192 bn) — other banks in total showed a loss.

the Profit of the banking system in the first half of 2016 was indeed mainly driven by state-owned banks, said Dmitry Lepetikov, head of marketing strategy and research VTB 24. This Bank, in particular, earned over the six months, 13.5 billion rubles "This was our best result over the past four years. The net profit of the second quarter of the current year (10.2 bn RUB) was an absolute record for similar periods in the history of VTB24. Overall for the year the financial result of the Bank may be even higher than the most successful for VTB24 2012. Then for 12 months, the Bank earned RUB 37.1 billion in net profit," says Lepetikov.

the state-owned Banks it is easier to increase the profitability, because they serve the Federal account and they have access to cheap liquidity coming from the budget (in the form of account balances budget and related institutions). "It is the state-owned banks are on the increase in the net interest margin (due to the lower cost of funding), while the rest of this is not happening," says Poryvai.

the Private segment of the banking sector remains highly unattractive from an investment point of view for the owners of the banks. Support of banks by the private capital is limited primarily by considerations of preserving the viability of existing business in the absence of significant investment in advanced development, the study said.

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Record due to the strengthening of the ruble profitability of banking assets fell to 0.9% first appeared