Foreign banks that remain in Russia earned a net profit of RUB 210.9 billion (US$2.3 billion) in the first nine months of the year, marking a 30% increase compared to the same period last year.

Source: a study by the Kyiv School of Economics (KSE)

Details: The study notes that, despite a decrease in their share of the Russian banking system's assets to 2.4%, foreign banks accounted for 8% of the system's total profit.

In total, 2,223 international companies continue to operate in Russia, 1,367 are scaling back operations, and 452 have left the Russian market.

Among foreign banks, Raiffeisenbank made the largest profit of RUB 107.3 billion (approximately US$1.2 billion), accounting for 4.08% of the total profit of the Russian banking system in the first nine months of this year.

Significant revenues were also reported by ICBC Bank (RUB 25.5 billion, or US$283 million), OTP Bank (RUB 22.5 billion, or US$250 million), Bank of China (RUB 9.9 billion, or US$110 million) and Credit Europe Bank (RUB 12 billion, or US$133 million).

Over the past nine months, at least three major foreign banks – UniCredit, Citigroup, and JPMorgan Chase – have either suspended operations or begun exiting the Russian market. This has reduced the assets of foreign banks still operating in Russia, yet their net profits continue to rise, with foreign banks remaining more profitable than local financial institutions.

Background: The Russian government will block any attempts by Raiffeisen Bank International AG and UniCredit SpA to sell their local units to any buyer that may be subject to sanctions.

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