Banks have become unprofitable business – BBC

Banks have become unprofitable business – BBC

banks’ profits from the beginning of the year fell by almost 10%. The reason – a sharp increase in provisions against the overall volatility of the situation: the growth of outstanding loans and an increase in foreign instability. At the same time, according to deputy chairman Mikhail Sukhov, a foreign bank is still eyeing the Russian market, intending to organize the work here before the end of the year. For the market is bad news, says its members.

Profits earned by banks in the first eight months, down 9.4% compared to the same period last year and amounted to 592 billion rubles., The Central Bank said in a report “On the dynamics of development of the banking sector the Russian Federation in August 2014. ” The reasons for this phenomenon in the CB report says nothing, however, referred to the increase in bank reserves since the beginning of the year by 20.7% (in the same period in 2013 – an increase of 14.7%). The Central Bank believe that the growth rate of profit does not change, while 10 percent lag representative of the regulator considered “natural against the background of changing conditions».

Bankers see other reasons for declining profits.

«The main reason for declining profits – the last time the value of resources greatly increased , while the rate on the loan portfolio, we can not so sharply increase, they grow much more slowly. Spread and margin decreased, “- says” the Newspaper “deputy chairman Investtradebank Kroshkina.

According to general director of rating agency” Expert RA “Paul Samieva, falling profits in the Russian banks – a medium-term trend . “Collectively, there are significant number of factors – an increase in provisioning for the last year, the decline in interest margins, the stagnation in some segments of the credit, and as a consequence, the reduction of commission income. Over the year, we are likely to see a further deterioration, as preconditions to increase profitability not “- he says.

At the same time on Tuesday the deputy chairman of the Central Bank, Mikhail Sukhov declared its readiness to another foreign bank to go to Russian market by the end of this year. “Non-residents of different jurisdictions will continue to work in the Russian market, we believe that there are all conditions,” – said the deputy chairman of the Central Bank.

The market took the news very negative about the possible presence of another major player.

«In general, it is strange to hear this from the Central Bank – Russian commercial Now banks are in trouble, the support is only from the state capital »,

– said a top manager of one of the major banks. “Going into a new market, mastering it, a large foreign bank may work several years at a loss. The Russian commercial banks can not. For the market is bad news “- agrees Kroshkina.

Top managers” daughters “of European banks that are present in the Russian market, it is unknown what the bank can come to Russia. “It is possible that the bank will come from Hong Kong, but it’s just a guess,” – says one of the interlocutors “Gazety.Ru».

For the emergence of a major player in the moment is not just is not very good, and a strange, unfavorable in many respects – and the dynamics and profitability, Paul points Samiev. According to him, if behind the great resources of the bank and at the same time it has long-term plans in the Russian market, bankers fear justified: for the rapid development of such a bank can use the dumping.