On the surface at least, all is well with Russia’s top 100 banks. Total profits in this year’s ranking (for financial year ending December 2012) were up 21% compared with the previous ranking, at $29.2bn, bringing an aggregate return on Tier 1 capital of 24.2%. Meanwhile, banks have been strengthening their capital position. Total Tier 1 capital in the top 100 rose by 35%, bringing the aggregate capital-to-assets ratio to 8.63%, from 8.48% in the previous ranking. Only eight banks recorded losses, totalling $353m, compared with 12 banks losing an aggregate $606m in the previous ranking.
Consumer credit in particular is booming – six of the top 10 banks by return on assets (including the top two) and six of the fastest growing by assets are all specialists in consumer lending. Nine banks with an established focus on consumer credit recorded an aggregate return on assets of 4.64%. In addition, two recent start-ups, Svyaznoybank and MTS Bank – both connected to the mobile telecommunications sector – entered profit for the first time.
