MOSCOW, April 6 (Reuters) – Alfa Financial institution made a document lack of 117.1 billion roubles ($1.44 billion) final 12 months, an organization report confirmed on Thursday, as sanctions on its monetary system hit Russia’s massive banks.
Russia’s central financial institution mentioned two of 13 official “systemically necessary credit score establishments” made losses in 2022.
These included state-owned VTB (VTBR.MM), which on Wednesday mentioned it expects to bounce again with document earnings in 2023 from a sanctions-induced $7.7 billion loss final 12 months, with Alfa Financial institution’s report confirming that it was the opposite.
Each banks had been positioned beneath Western sanctions in response to Russia sending tens of hundreds of troops into Ukraine.
Russian banks have rallied after a collective 90% revenue drop final 12 months, with lenders now jostling for enterprise from the state, notably a burgeoning defence finances, and the nation’s massive company accounts.
Alfa Financial institution had made a web revenue of 136.6 billion roubles in 2021, a document 12 months for Russian banking sector earnings.
Provision prices for doable mortgage losses jumped about 5 occasions to 167.4 billion roubles, Alfa Financial institution’s report mentioned.
Nevertheless, web 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 accomplice and its co-founder Andrei Kosogov.
($1 = 81.1455 roubles)
Reporting by Elena Fabrichnaya; Writing by Alexander Marrow; Modifying by Alexander Smith
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