Profits Of Belarus’ Largest Banks Go Down

The profit of the "Belarusbank" has fallen by almost 17% compared to last year.

Net profit of the majority of banks, which have the largest size of assets, declined in January-September 2016 compared to the same period last year, BelaPAN reports referring to the National Bank’s information, made public on November 8.

The profits of the country's largest bank "Belarusbank" in January-September amounted to Bn 110,3 million, having decreased by 16,7% compared to the same period last year.

The state-owned "Belagroprombank", the country’s second bank by the scope of assets, earned Bn 13,9 million in January-September, which is almost three times less than the profit for the same period last year.

The net income of the state-owned "Belinvestbank" in January-September amounted to Bn 6,8 million rubles – 41,7% less compared to the same period last year. The net profit of the state-owned "Bank Moscow-Minsk" also decreased by almost a half.

The only state-owned banks, which managed to increase profits, was "Paritetbank". The net profit of the "Priorbank" – a bank with Austrian capital - in January-September amounted to Bn 97,6 million, with an increase of 14% compared to the same period last year. The "BPS-Sberbank" earned Bn 15,8 million, which is 2,5% more.

At the same time the profit of other large commercial banks with the Russian capital has decreased. In the "Bank BelVEB" it was Bn 46,5 million, which is 3,5% less compared to the same period last year. The net profit of "BGB" was Bn 76,7 million - minus 0,9%.

The experts explain the reduced profitability of the banking business in the current year by the growth of troubled assets that require creation of an additional reserve at the expense of profits.

As of October 1, the share of troubled assets made 14,3%, having increased an since the beginning of the year by more than twice. At the same time, the share of these assets in the banking system decreased by 0,5 percentage points in September, for the first time after a ten-month growth.