© RIA Novosti, Vladimir Astapkovich
RIA Rating – may 22. The profit of the Russian banking sector for the first quarter of 2020 has updated several historic records. According to the Bank of Russia, the total profit of banks in January-March 2020 amounted to 612 billion rubles that became a maximum quarterly profit in history. For comparison, the previous quarterly record was set in 2019 in the first quarter, when profit amounted to 587 billion rubles. In General, over the last 12 months (from 1 April 2019 1 April 2020), the total profit of banks amounted to 2.1 trillion rubles, which is the highest amount of earnings on a sliding 12-month period. Thus, in 2020 were set two historical records in profitability (quarterly and on the moving segment).
The strong quarterly result was the result of quite high monthly profits in all three months, however, the record in terms of profit for the month formally was not updated. In particular, in January banks earned 223 billion, which was the second result in the history in terms of profitability. For comparison, the historical maximum was observed relatively recently – in January 2019, the results of which banks earned 264 billion. The result of the first month of 2019 was distorted by the transition to the new accounting standards, and purified from the accounting effect profit, according to estimates of RIA Rating, was a little less than 160 billion rubles. Most likely, in the coming months, the profit of the banking sector may significantly decline due to the economic situation, the pandemic coronavirus.
The return on assets over the last 12 months also significantly increased. On April 1, 2020, the return on assets (for 12 months) the Russian banking system amounted to 2.2% against 1.8% on 1 April last year. In turn, the return on equity in the Russian banking sector on April 1, 2020 amounted to 19.5% vs. 15.9% on the same date in 2019. It should be noted that the capital profitability of the banking sector is at a very high level by the standards of recent years, which testifies to high efficiency of the banks.
by Almost all major banks profitable
To study the situation in the context of individual credit institutions, the Agency RIA rating on the order of AEI PRIME conducted a study on profitability of banks and prepared a ranking of Russian banks in terms of return on assets on April 1, 2020. The ranking presents data on the 200 largest by assets credit institutions on 1 April 2020 (they control 99% of all banking system assets), which published statements according to forms No. 101 and No. 102 on the website of the Central Bank of the Russian Federation.
The share of profitable banks among the two hundred largest in terms of assets at the beginning of 2020 continues to grow. Presented in the current ranking of banks by the end of the first quarter profit was 176 banks or 88% of the total. For comparison, the ranking on 1 April 2019 and 2018 profitable banks was 82% and 79%, respectively. It should be noted that the result of the first quarter was the best in 2015, for this time interval, and improved from the beginning of 2017. According to experts RIA Rating, in the coming quarter, the share of profitable banks may cease to grow because of the coronavirus and the growth of provisions for possible losses.
Among different size groups of the TOP 200 banks ranked by asset size and divided into 50 banks, the share of profitable fluctuated moderately within 12 percentage points (from 82% to 94%). The greatest share of profitable banks was characterized by banks located from 51 to 100 in terms of assets. Among the largest credit organizations of the TOP 50 profitable banks about the same (92%). While the two remaining banking groups – from 101 to 150 seats 151 and 200 places profit showed 82% and 84% of banks, respectively. Thus, among large credit institutions, the share of profitable banks were somewhat larger.
The most profitable in absolute terms, the Bank became the savings Bank, the financial result before tax of which on the sliding interval of 12 months amounted to 1.1 trillion rubles. Against the result of April 1, 2019 profit leader of the banking sector increased by 81 billion, or by 8%. Second in the ranking in terms of revenue was the ALFA BANK, which over the past 12 months has received 167 billion rubles. The profit of ALFA-BANK decreased slightly relative to the result based on the moving segment as of April 1, 2019. It is worth noting that ALFA-BANK is the 4th in terms of assets, but shows the second result in absolute profitability. VTB Bank has become the third in ranking with the financial result in 152 billion. In total, the top three banks earned about 1.4 trillion rubles, which accounts for almost 70% of the profit before taxation of all profitable Russian banks over the last 12 months.
In fourth and fifth place in absolute terms, profits have located the Bank GPB (Gazprombank) and Bank TRUST, however, the profit for the 12 months is much less than the leaders. Thus, the financial result of the Bank GPB as at April 1, amounted to 52 billion rubles, and the Bank's TRUST – 44 billion rubles. In General, the rankings are 23 credit institutions the profit before tax exceeded 10 billion rubles. For comparison, on April 1, 2019 only 22 banks were able to earn more than 10 billion rubles. In the current ranking of a profit of 1 billion rubles received 94 banks, against 88 on 1 April last year.
the Median profitability continues to grow
According to the study, conducted by experts from RIA Rating, the median return on assets of banks included in the ranking, on 1 April 2020 was 1.76%. For comparison, on the same date in 2019, the median profitability of banks TOP 200 banks amounted to 1.65% and on April 1, 2018 – up to 1.22%. According to analysts at RIA Rating, the increase of the median profitability indicates that not only large banks can show a good result, but the medium-sized banks too.
In the rating of the hundred of banks on 1 April 2020, in comparison the result on the same date in 2019, the growth in profitability was characterized by exactly half of the banks. While the leaders of the rating, the growth of profitability was observed the bowl. Among the fifty most profitable banks in the current rating of 30 (60%) was characterized by the growth of profitability and in the TOP 100 – 57 credit institutions showed an increase of profitability. Thus, the profitability grows primarily from banks, which she is and so high.
the Most profitable private banks
Private banks among all types of banks by forms of ownership (public, private and banks with controlling foreign participation) are characterized by the highest profitability of assets on a sliding 12-month period. The return on assets from private banks from the rating was 2.6%. While state-owned banks and banks with a controlling foreign participation return on assets was somewhat smaller – 2.1% and 2% respectively. Thus, private banks unable to get ahead in profitability of foreign assets, although in recent years foreign banks have increasingly showed a higher level of profitability.
The leader of the ranking in terms of return on assets was NKO Yandex.The money, the return on assets which by the end of the first quarter was 16.9%. Second in the ranking of return on assets was the Bank KIWI Bank, with return on assets at 13.2%. Also high profitability demonstrated by: the Bank IBA-MOSCOW and rnko Payment Center, which took 3-th and 4-th place in terms of return on assets (12,7%, 10.8%). It is worth noting that the KIWI Bank and NGO-Yandex.Money and rnko Payment Center was among the leaders as of April 1, 2019. Thus, maintenance of electronic payment systems allows you to show the credit organizations high profitability.
The weakest return on assets in the first quarter of 2020 showed Minbank rehabilitated, return on assets, which amounted to -18%. Second and third place from the end of return on assets took INTERPROMBANK and es-Bi-ay Bank, profitability of assets was 8.6% and -8,5%, respectively. In fourth place is the Bank, with the result – -6,2%, the CSG, the Bank the top five (-4,3%). Thus, three of the five most unprofitable banks – banks under rehabilitation.
According to analysts at RIA Rating, the situation in the economy due to the coronavirus while difficult to forecast and therefore difficult to predict the profit of the banks. It is worth noting that in the coming months, banks ' profits may decline because of a revaluation of credit risks and increased reserves, triggered by the increase in defaults of loans from both individuals who have declining real incomes and legal entities, especially small businesses. In addition, due to the decline in economic activity will be reduced Commission income.
The rating of banks on profitability of assets on April 1, 2020 in PDF format >>
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