May holidays has caused an outflow of deposits in Russia

the savings of Russians on Bank deposits started to decline after rising in April. The reason – the may holidays, said the CBR.

But the outflow of savings deposits is not exceeded the withdrawals from the accounts at the beginning of the crisis, said the Bank of Russia. “More spending because of the holidays, and lower incomes due to less number of working days, especially for people on a piecework payment,” explained RBC in the press service of the regulator.

In March 2020, the Russians withdrew more cash than all of 2019 – 1 trillion rubles in cash because of fears of Bank closures for the duration of the quarantine. However, the stock accumulation was so great that the total volume of funds of individuals in banks located in rubles, increased in March by 0.01% (19.9 billion rubles) and amounted to RUB 24,522 trillion Outflow of long-term ruble deposits for March totaled 224,5 billion RUB, However it compensated for the inflow of funds deposited in demand Deposit accounts and deposits of up to one month.

In April, the resumed growth of deposits after the crisis of March and continued to increase lending to companies, according to a review of the Central Bank “On the development of the banking sector of the Russian Federation in April 2020”.

the Deposits of Russians on Bank accounts grew by 371 billion rubles (+1,2%) after outflow in March (-315 billion rubles., or -1.0 per cent). In April 2020, net profit of banks fell 6 times to RUB 32 billion in comparison with March.

Russian banks in 2020 will remain profitable, the head of the Bank of Russia Elvira Nabiullina. According to her, the reduced Commission and interest income, “however, this impact on the interest margin, as in 2014-2015, can’t be”.

In 2019, banks have earned once again a record profit, and the Bank of Russia in the conditions of a pandemic recommends banks not to pay dividends: the profits can bethe source of banks ‘ capitalization.

pre-tax profit of the Russian banking sector in 2019 increased by 1.5 times to 2 trillion rubles, net profit increased by 1.7% to 1.7 trillion rubles Deposits in banks in 2019 increased by 9.9% and amounted to RUB 30,549 trillion