MOSCOW, April 6 (Reuters) – Alfa Financial institution made a document lack of 117.1 billion roubles ($1.44 billion) final yr, an organization report confirmed on Thursday, as sanctions on its monetary system hit Russia’s large banks.
Russia’s central financial institution stated two of 13 official “systemically vital credit score establishments” made losses in 2022.
These included state-owned VTB (VTBR.MM), which on Wednesday stated it expects to bounce again with document income in 2023 from a sanctions-induced $7.7 billion loss final yr, with Alfa Financial institution’s report confirming that it was the opposite.
Each banks had been positioned underneath Western sanctions in response to Russia sending tens of 1000’s of troops into Ukraine.
Russian banks have rallied after a collective 90% revenue drop final yr, with lenders now jostling for enterprise from the state, significantly a burgeoning defence finances, and the nation’s large company accounts.
Alfa Financial institution had made a internet revenue of 136.6 billion roubles in 2021, a document yr for Russian banking sector income.
Provision prices for attainable mortgage losses jumped about 5 instances to 167.4 billion roubles, Alfa Financial institution’s report stated.
Nonetheless, internet curiosity revenue rose to 211.7 billion roubles from 175.8 billion roubles in 2021 and Alfa Financial institution’s property elevated to five.82 trillion roubles, from 5.62 trillion roubles.
Alfa Financial institution didn’t reply to a request for remark.
Sanctioned Russian businessmen Mikhail Fridman and Petr Aven are in talks over promoting their stake in Alfa Financial institution to their longtime enterprise associate and its co-founder Andrei Kosogov.
($1 = 81.1455 roubles)
Reporting by Elena Fabrichnaya; Writing by Alexander Marrow; Enhancing by Alexander Smith
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