Russian banks record a loss of $25 billion in the first half of the year
The Russian banking sector lost 1.5 trillion rubles ($24.8 billion) in the first half of 2022, according to a senior central bank official. He said Friday.
This is the first time the central bank has disclosed its financial results since Moscow invaded Ukraine in February.
“Losing banks lost 1.9 trillion rubles, and profitable ones made 400 billion rubles,” Dmitry Tulin, first deputy head of the Central Bank, told the RBC news site in an interview.
“So, algebraically, we get a total loss of 1.5 trillion rubles,” Tolin said.
The central bank stopped publishing figures for the banking sector after the war began and lenders were prevented from publishing regular earnings reports as Western governments froze Russian financial assets abroad and imposed sanctions on Russian banks.
And RBC reported that the loss incurred by the Russian banking sector is the first in seven years.
Tolin said a quarter of Russian banks posted losses in the January-June period, while three quarters remained profitable.
According to Tulin, two-thirds of the losses in the first half of 2022, or 1 trillion rubles, relate to foreign exchange operations.
“We can say that we have managed a few casualties so far,” he told RBC, noting that Russian banks still have reserves of 7 trillion rubles ($116 billion).
A smaller portion of the capital reserve has been used as a result of these losses. “This is not the most expensive price to get over the consequences of the heavy blow to our banking system through sanctions,” Tulane said.
The banker expected that the banking sector in Russia will close in 2022 with losses of 1.5 trillion rubles or less.