Russian Banking Sector in 2022

A slight reduction in the total number of banking credit institutions was accompanied by consolidation of the banking sector. 2022 saw an increase in assets, (information on equity and profit is not published). Due to the rapid recovery of the economy, total assets of credit institutions last year increased by 14.7% (in 2021 the increase amounted to 15.9%). Thus, the growth rate of assets remained approximately at the level of the previous year. Over January-June, the losses of the banking sector exceeded Rb1.5 trillion, the negative financial result is largely due to the Western sanctions against the largest Russian credit institutions, revaluation of currency positions due to a sharp change in the exchange rate of the ruble, as well as the outrunning growth of funding costs over the return on assets due to the growth of the key rate. In H2 2022, as the economic situation stabilized, the aggregate loss gradually decreased, and at the end of the year the banking sector recorded a profit at the level of Rb203 bn, the share of profitable credit institutions stood at 78%