Russian banks see net profit fall to 3.5 trln rubles in 2025 from 3.8 trln rubles a year earlier - CBR

MOSCOW. Feb 3 (Interfax) - The Russian banking sector earned a net profit of 3.5 trillion rubles in 2025, down 8% compared to the result for the same period of the previous year (3.8 trillion rubles), according to a review from the Central Bank of Russia.

The Central Bank's forecast for 2025 assumed banks' net profit in the range of 3.2 trillion to 3.5 trillion rubles. The Central Bank explains the decrease in the financial result compared to 2024 in terms of an increase in the cost of risk for loans. At the same time, the return on equity (ROE) on average for the sector decreased to 18%, compared to 23% in 2024.

In December, the sector's profit decreased 55% month-on-month to 176 billion rubles. Banks' core profit in December amounted to 84 billion rubles, decreasing by 218 billion rubles over the month due to an increase in provisions (by 230 billion rubles or 119%), including for a number of corporate borrowers, investments in ecosystem business and problem assets. Furthermore, December's profit was affected by the traditional year-end increase in operating expenses (by 132 billion rubles, +34%). For the most part, personnel costs increased (+40 billion rubles, +23%) and marketing costs also rose (+28 billion rubles, +74%).

The decrease in core profit was partially offset by an increase in net interest and net commission income (+144 billion rubles, +16%), associated with heightened transactional activity at the end of the year and the recognition of one-time income by some banks. Non-core (volatile) income amounted to 144 billion rubles, increasing by 53 billion rubles (+58%) compared to November, primarily due to positive revaluation of securities.

The sector's aggregate financial result for December was around 256 billion rubles, after 420 billion rubles in November (3.9 trillion rubles for 2025).

The Central Bank expects banks to earn a net profit of 3.1 trillion to 3.6 trillion rubles in 2026.