Profits of Russian banks rose sharply in August, according to the Central Bank. The domestic banking sector is expected to show record profits at the end of the year, as in 2023.

The actual profit of domestic banks in August amounted to Br435 billion. This is 129 billion rubles more than in July.

The Bank of Russia explains this profit growth by the currency revaluation of the long open foreign exchange position. It is caused by the decline in the ruble exchange rate against the dollar and the euro. Banks earned extra money on the strengthening of the yuan against the euro and the dollar.

They also earned income by issuing loans. The number of profitable banks in Russia increased from 250 in July to 261 in August.

Russia's banking sector earned a record 3.3 trillion rubles in 2023. This year, the Central Bank expects a profit of 3.1-3.8 trillion rubles.

Ksenia Yakushkina, director of bank ratings at Expert RA, told Rossiyskaya Gazeta that the growth in loan portfolios has contributed to an increase in banks' interest income, which led to a rise in the banking sector's profit in January-June this year.

Lending is expected to slow down in the second half of 2024 due to the growth of the key rate. According to Yakushkina, the profit of banks by the end of the year will amount to 3.6-3.8 trillion rubles.

Earlier it was written that Russian banks began to raise deposit rates.

It was also reported that in Russian banks the rate on market mortgages exceeded 21% per annum.

Author: Наталья Чудесатова

Donald Trump reacted to the decision of the Chinese authorities to raise duties on American goods to 34%. He called this step a sign of confusion on Beijing's part and pointed out that such a policy only harms the interests of China itself.

According to Trump, the Chinese side “panicked” and demonstrated an inability to build rational economic relations with Washington. He emphasized that such a step undermines trust between the countries and leads to an escalation of the conflict.

Beijing, in turn, believes that the U.S. duties upset the balance of international trade. The representative of the Chinese Foreign Ministry noted that the actions of the American side do not contribute to economic stability and worsen relations between the world's largest economies.

The situation has attracted the attention of experts, who warn of the possible consequences of the trade confrontation for the global market. The increase in tariffs, in their opinion, may affect not only the volume of supplies, but also prices around the world.

The topic of economic relations between the two powers remains in the center of attention. Thus, China has previously stated its readiness for a stable dialog with the U.S. despite disagreements. In addition, Beijing has already appealed to the World Trade Organization with lawsuits against US duties, defending its interests in the international arena.

Author: Наталья Чудесатова