Banking Sector’s Financial Performance in 2021

Sergey A. Zubov – Senior Researcher of the Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences, Associate Professor (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

In 2021, the profit of the banking sector hit a record Rb2.4 trillion. The achievement of this high indicator was influenced by several factors: the aggressive banks’ policy in the credit market; reduction of provisioning costs due to a low share of overdue loans; growth of commission income on intermediary operations. An increase in the Central Bank key rate led to higher funding costs and a negative revaluation of part of investments in the securities market, which slowed down profit growth in Q4.

Key words: Russian banking sector, banks’ financial results, banks’ profit, banks’ profitability, Bank of Russia.

JEL-codes: D81, E58, G21.