Russia: Aggregate Corporate Profit Reaches USD104.4 Billion In 2005

According to recent RosStat data for the whole 2005, aggregate corporate profit amounted to RUR3 trillion (US$104.4 billion) in the mentioned period.

According to recent RosStat data for the whole 2005, aggregate corporate profit amounted to RUR3 trillion (US$104.4 billion) in the mentioned period. The result for 2004 was revised. The monthly profit amounted to RUR285 billion (US$9.9 billion) in December 2005, which means a 6% month-over-month growth as compared to November. The overall year-on-year growth accelerated from 35.2% in the period from Jan.–Nov., to 36.6% in Jan. –Dec. The growth is still much lower that an impressive 52.4% posted in 2004.

The share of loss-making companies slid further to 33.5% in 2005, against 34.5% in Jan.-Nov. and 35.8% in 2004. Generally speaking, December showed a similar growth pattern compared to November, keeping the major tendencies in corporate profit sector breakdown. In year-on-year terms, the biggest profit in 2005 was posted in extraction (75.6% in general and 85.7% in energy resources), due to continuously very high prices on metals and energy resources. Profit in real estate services sector increased by 47.7% y/y in 2005, against 46.9% y/y in Jan-Nov.

Retail trade and services showed an increase in profit of 42.5% y/y in 2005, compared to 40.7% in Jan-Nov. Profit in construction surged by 21.1% y/y in 2005 versus a growth of 6.3% witnessed in Jan-Nov. In transport and telecommunications the profit surged by 30.3% y/y in 2005, with railroad transport posting an actual increase in profit of 1.5% (the sector continued to post losses for a few months in a row) and telecommunications rose by 61.5% in the mentioned period. Processing industries posted a 16.2% y/y increase in 2005, compared to a 15% growth in Jan-Nov.

Meanwhile, according to CBR data, aggregate banking profits went up by 47.3% y/y in December to RUR262.1 billion (US$9.11 billion), compared to RUR252.3 billion (US$8.8 billion) in November. Monthly profit inched up by 1.2% y/y to RUR9.83 billion (US$341.5 million), compared to a surge of 206.5% y/y in November, when the indicator amounted to RUR26.97 billion (US$938.7 million).

Total assets increased by 36.6% y/y in December and amounted to RUR9.75 trillion (US$338.8 billion). In m/m terms the indicator went up by 3.8%, decelerating slowly from November’s 4.4% growth. Acceleration in lending was visible in December, as loans to non-banks were up by 3.2% m/m in December from 2.6% in November. Growth of retail loans accelerated to 7.5% m/m in December, compared to 5.7% the month before. Investment in securities surged by 6.8% m/m in December, compared to an inch-up of 0.6% in November. Banks’ liabilities went up by 3.6% m/m in December and amounted to RUR8.43 billion (US$292.9 billion), compared to a growth of 4.6% in November. Client deposit growth made up 4.6% m/m in December, marking acceleration compared to November’s 3.3% growth. The figures indicate steady expansion of banking sector in December.

Banking Sector Performance

Dec 04

Nov 05

Dec 05

RUR bn

% y/y

%m/m

RUR bn

% y/y

% m/m

RUR bn

% y/y

% m/m

TOTAL ASSETS, o/w:

7,136.9

27.4

4.0

9,391.6

36.8

4.4

9,750.3

36.6

3.8

Loans to non-banks

3,268.7

37.1

4.7

4,141.3

32.7

2.6

4,274.8

30.8

3.2

Loans to individuals

618.8

106.5

7.9

1,096.8

91.3

5.7

1,179.2

90.6

7.5

Investment in securities

1,086.9

8.5

-5.0

1,441.5

25.9

0.6

1,539.4

41.6

6.8

TOTAL LIABILITIES, o/w:

6,130.8

28.1

4.3

8,138.7

38.4

4.6

8,430.1

37.5

3.6

Client Deposits, o/w:

4,151.5

38.4

5.8

5,565.5

41.8

3.3

5,818.9

40.2

4.6

Individual deposits

2,026.7

30.0

5.7

2,635.1

37.4

3.0

2,817.1

39.0

6.9

OWN FUNDS, o/w:

1,006.1

23.4

2.1

1,252.9

27.1

2.9

1,320.2

31.2

5.4

Profit for the current year

177.94

37.9

5.8

252.27

50.0

12.0

262.10

47.3

3.9

Monthly profit

9.71

-21.6

10.3

26.97

206.5

52.0

9.83

1.2

-63.5

Source: CBR, IntelliNews