Russian bank profits to be lower than last year, 2025 will be challenging for sector - Sberbank's Gref

MOSCOW. Feb 27 (Interfax) - The profits of Russian banks in 2025 will be lower than last year, and 2025 will be challenging for the sector, Sberbank CEO Herman Gref said.

"I'm certain that this year the banking sector's profit will be lower unless everything goes according to some very rosy scenario. This year will be very challenging for the banking sector. And drawing up a business plan for this year was difficult for us, to be honest," Gref said on a conference call.

"Banks will definitely not show any super results. If everything goes as it has been unfolding, then profits will be lower. Lending dynamics, for example, fit in with this," he said.

The Central Bank forecasts Russian banks might earn 3 trillion-3.5 trillion rubles this year against a record 3.8 trillion rubles in 2024.

Sberbank predicts the Central Bank will start to lower the key rate from the second half of 2025.

Sberbank has already lowered deposit rates slightly and is thinking about cutting mortgage rates.

"We are now deciding whether to lower mortgage rates. We have taken the first small step towards lowering the commercial price of mortgage loans [the decision has not yet been announced]. This is quite an event. A small step to lower deposit rates and a small step to lower lending rates. We need to put out the feelers for this threshold. Let's see how it goes. We were the first bank to take this step. The feeling is that a [market rates reduction cycle] will begin," Gref said.