Foreign Banks in Russia See Profits Rise by 30%
According to a recent study, foreign banks operating in Russia have made more money than ever. From January to September of this year, their profits reached 210.9 billion rubles (approximately $2.3 billion). This is an increase of 30% compared to the same period last year.
Despite many international companies leaving Russia after its invasion of Ukraine, some foreign banks are still doing well. The study found that about 2,223 international companies continue to operate in Russia, while 1,367 have scaled back and 452 have left for good.
Foreign banks make up only a small part of the Russian banking system – just 2.4% of its assets. But they contribute a bigger share to the system’s profits, making up about 8%. Raiffeisen Bank was the standout performer, earning 107.3 billion rubles (about $1.2 billion) and making up 4.08% of the Russian banking system’s total profit.
The study found that some big international banks are either suspending activities or leaving Russia. However, this hasn’t stopped other foreign banks from staying profitable.
Foreign Banks Outperform Local Ones
While the presence of foreign banks in Russia has decreased, their profits have actually gone up. They now make more money than many local Russian financial institutions. The study said that this shows surprising financial resilience given the ongoing tensions and international pressure on Russia.
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