27 Apr 2020 14:02

Commission income of Russian banks could drop 50% in 2020 - Gref

MOSCOW. April 27 (Interfax) - Commission income of Russian banks in 2020 could drop 50%, Sberbank CEO Herman Gref said.

"We see a big drop in transactional activity. This year, we should see that most banks would likely receive less than 50% of their [usual] commission income, which is about 150-200 billion rubles in money," Gref said in Nailya Asker-zade's film, Dangerous virus. Economy, shown on the Rossiya 1 TV channel.

Central Bank of Russia (CBR) Governor Elvira Nabiullina had previously said that the regulator expects a reduction of 20% in the commission income of Russian banks in 2020

Gref also said that the revenue of the banking sector would be affected by the fact that the cost of raising funds has increased 0.3 pp since the beginning of the year, totaling 50 billion rubles. He said that an increase of every 1 pp in the cost of borrowing reduces banks' revenue 150 billion rubles.