Central Bank: banks will maintain profitability for the year

At the end of the year, the banking sector will not go into minus. This statement sledila the Chairman of the Central Bank of Russia Elvira Nabiullina in her speech at the end of the reference meeting of the Board of Directors of the Bank of Russia.

the Chairman of the Central Bank of the Russian Federation noted that the Russian banks in June can get to come slightly higher than in the previous month. At the end of this year is projected to be “small profit” for the banking sector.

” And given the fact that in the first months banks have earned sufficient amount of profit, and the second factor is that after all the economy is slowly recovering, we believe that ultimately at the end of the year the profit of banks will be”, — said Nabiullina.

Earlier it was reported that Russian banks may have received record-low profit — income decreased to a symbolic 0.5 billion to 32 billion rubles in April. For the first five months, banks showed a net profit of 561 billion rubles, said the Chairman of the Central Bank Elvira Nabiullina at the joint meeting of the committees of the state Duma.

the Head of the Central Bank said the growth of deposits in Russian banks by 1.4%. Nabiullina noted that at the beginning of the pandemic coronavirus savings of Russians has declined as the fall in income. The Bank of Russia will continue to monitor the savings behavior of Russians, said Elvira Nabiullina.

However, Nabiullina said the weak fundamentals of the global economy. The world Bank and the OECD lowered its forecasts for the global economy, geopolitical risks persist. This may have a negative impact on world economic growth.

slow growth of the global economy will affect Russia’s limited possibilities of increasing exports, including in connection with the obligations under the transaction OPEC+.

In these circumstances, the balance of risks remains tilted toward the disinflationary factors. A lot depends on support measures and plans further fiscal consolidation.

the Bank of Russia in its base case does not lay down the risks of a second wave of coronavirus, but even if implemented, the consequences will be less than that of the first wave, said Elvira Nabiullina. The head of regulator believes that the financial system and people’s behaviour has adapted to the risks of the pandemic.