UPDATE: Cbank sees combined banks’ 2018 profit rising to 1.5 trln rbl

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RECREATION HOUSE BOR, Moscow Region, Feb 2 (PRIME) -- Russian banks’ overall net profit for 2018 will rise to 1.5 trillion rubles in 2018 although it can be lower because of bailouts of three key banks, Central Bank Chairwoman Elvira Nabiullina told reporters on Friday.

“We estimate the profit most likely at around 1.5 trillion rubles. This is a large figure, but it can be adjusted down,” she said on the sidelines of a meeting with the Association of Russian Banks.

She said that the expected profit could be lower because of undervaluation of asset quality of the banks and creation of more reserves.

“This figures is floating. It depends on the efficiency of operations,” Nabiullina said.

The central bank started bailing out Promsvyazbank with the Banking Sector Consolidation Fund in December. Earlier in 2017, it launched bailouts in Otkritie Financial Corporation (FC) Bank and B&N Bank.

In 2017, the profit could have amounted to 967 billion rubles, but for the bailouts, Nabiullina said.

“The profit of the banking sector amounted to 790 billion (rubles) last year. Let me remind you that a profit of 930 billion rubles was received in 2016,” Nabiullina told the Association of Russian Banks.

“The decisions we made at the end of the year on bailouts of the largest banks, on proper reflection of asset quality of these banks and creation of necessary reserves took their toll on the total amount of profit.”

(56.2613 rubles – U.S. $1)

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