Nearly two-thirds of the losses reportedly resulted from foreign currency operations. Credit: Thomas Lefebvre on Unsplash.

Banks across Russia together have suffered losses totalling $24.95bn (RUB1.5tn) in the first half of 2022, reported Reuters citing a statement by Russian central bank’s official.    

The earnings relating to the banking sector were disclosed by Russian central bank first deputy chairman Dmitry Tulin in an interview with RBC business daily.

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According to Tulin, nearly two-thirds of the total losses resulted from foreign currency operations.

Further, the country’s key banks reportedly accounted for major part of the losses, amid sanctions that were imposed after invasion of Ukraine.

Institutions that recorded poor performance saw a combined $31.60bn (RUB1.9tn) loss, while other lenders reportedly earned a combined $6.65bn (RUB400bn).

However, there was “more than 50% chance” of losses not exceeding $24.95bn for the full year, Tulin said.

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He added that the country’s central bank does not expect a crisis in the banking sector as it did during 2014-17 period.

During the crisis-hit period, the central bank bailed out several lenders and cancelled licences for hundreds of banks.

Following economic sanctions, the central bank recently revealed severe liquidity crisis in Russia’s banking system.

The bank said the liquidity shortage in the country’s banking system had surged to $68.25bn (RUB6.9tn) on 2 March 2022.

In March this year, Russian banks considered tapping China’s UnionPay after US payment majors Mastercard, Visa and American Express suspended their service in the country following its invasion of Ukraine. The overseas ban also included cards issued by local subsidiaries of foreign banks.