Russian banks boost profit 14% MoM to 244 bln rubles in March - Central Bank

MOSCOW. April 18 (Interfax) - Russian banks boosted profit 14% month-on-month to 244 billion rubles in March, the Central Bank said in its review of banking sector dynamics.

Return on equity increased to 16% from 14.3%.

The Central Bank notes that profits continue to be affected by losses from currency revaluation, which have significantly decreased, namely dropping 30 billion rubles in March against falling 146 billion rubles in February, owing to the ruble not strengthening against the dollar as much as in February, namely +5% after +12%.

Meantime, income from securities decreased by 78 billion rubles (-62% to 49 billion rubles), including owing to a decrease in the Moscow Exchange index amid ongoing geopolitical tensions and tight monetary conditions.

Net interest and net commission income increased by 76 billion rubles, or 11%, amid accelerated lending to legal entities and growth in transaction activity.

Allocations to reserves increased by 48 billion rubles (+ 33%), mainly owing to the recognition by individual banks of losses on other assets, including unresolved disputes.

Operating expenses for a number of items increased by a total of 30 billion rubles (+9%).