Russian banks' profit in 2011 could exceed the results of 2010 - Central Bank

Profit banks in Russia in 2011 could exceed last year's results, told the director of the department of banking regulation and supervision of the Bank of Russia Alexei Simanovsky. "I believe that profits this year will be at the level of 2010, maybe more," - he said. Earlier, the first deputy chairman Gennady Melikyan said that the CBR expects the balanced aggregate pre-tax profit for 2010 of the order of 550 billion rubles. According to the CBR, the aggregate pretax profit of banks on October 1, 2010 totaled 387.7 billion rubles. A. Simanovsky believes that in 2011 a greater impact on earnings Russian banks will have loans and income from operations. CBR stores predictions about the growth of loan portfolio in 2011 to 20-25%, said Alexander Simanovsky. Head of Department also expects that the effect of the dissolution of reserves to earnings in 2011 will be lower than in 2010. He estimated that in 2010 the difference between the created and dissolved reserve was about 500 billion rubles. "Russian banks created in 2010, more reserves than dissolve, but the influence of dissolution was great," - he said. At the end of three quarters of 2010 the difference between the amount of provisions and was disbanded 289 billion rubles, and for the same period of 2009 - 813 billion rubles.