Bank of Russia raises 2024 profit outlook for banking sector

The Bank of Russia on Tuesday raised its profit forecast for the banking sector in 2024. The new range is between 3.3 and 3.8 trillion roubles ($36-41 billion), higher than the previous estimate of 3.1-3.6 trillion roubles ($34-39 billion).

The upgrade reflects positive performance in July, with the cost of risk in the corporate portfolio remaining low and business growth boosting banks’ operating profits.

The regulator maintained its 2025 profit outlook at 2.7-3.2 trillion roubles ($29-35 billion).

In the first half of 2024, Russian banks reported a net profit of 1.7 trillion roubles ($18 billion), with 899 billion roubles in the first quarter and 770 billion roubles in the second quarter.

Additionally, the Bank of Russia increased its forecast for household funds growth in bank accounts for 2024 to 16-21 per cent, up from the earlier projection of 14-19 per cent.