Russian banks increase profits 18% MoM to 443 bln rubles in July - Central Bank

MOSCOW. Aug 24 (Interfax) - Russian banks increased net profits 18% month-on-month to 443 billion rubles in July, the Central Bank of Russia said in its banking sector development report.

Return on equity (ROE) increased to 23.6% from around 20% a year previously.

Banks' core profits grew 28% to 442 billion rubles as the cost of provisions for problematic assets decreased from 282 billion rubles in June to 168 billion rubles. The cost of provisions fell most in the corporate segment, by 77% to 103 billion rubles. Certain banks restored provisions, including after some borrowers updated business plans to take into account a growth in revenue, the CBR said.

Non-core revenue fell by 46 billion rubles or 31%, mainly due to lower dividend income from subsidiaries and dependent companies.