The profits of Russian banks will be about 16 to 18 percent in 2003, Russian Central Bank Deputy Chairman Andrey Kozlov declared in the Federation Council today. According to him, the ratio of return on capital in the banking sector is almost twice as much as in all other sectors of the Russian economy.
Credit organizations received 90bn rubles (about $3bn) in profits in the first 8 months of 2003, which was almost equal to the 2002 result. The main sources of revenues were interest revenues (51.5 percent) and operations with securities (31.2 percent).
Kozlov noted that administrative expenses had not grown over the past 2 to 3 years. He admitted that 97 percent of Russian banks were financially stable.