The net profit of Russian banks in the current year will be reduced by at least half. The reason is the deterioration in credit quality and a slowdown in retail lending. As reported by “PRIME”, said the Director of the direction “Financial institutions” by the international rating Agency S&P Global Ratings Sergey Voronenko. He noted that Russian banks at the end of last year showed a record high net profit of 1.7 trillion rubles for the company. This year, likely, profitability of banks will fall by at least half due to the gradual deterioration in asset quality, the expert added. Moreover, this will also impact the factor that is expected to slowdown in retail lending, which is characterized by traditionally higher rates of return, said Voronenko. According to the forecast of S&P, expected credit losses will increase, but not more than in 2014-2015; they will be comparable to levels of most emerging markets.
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