Foreign banks operating in Russia have increased their net profit by 30% during the first nine months of the year, reaching 210.9 billion rubles (approximately $2.3 billion), according to a recent study by KSE Institute.

Many foreign companies exited from Russia following its invasion of Ukraine in February 2022. About 2,223 international companies continuing operations in Russia, while 1,367 are scaling back and 452 have completed their exit, the Kyiv Schools of Economics reports.

The study by the KSE reveals that although foreign banks now represent only 2.4% of the banking system’s assets, they contribute a disproportionate 8% to the total system profit.

Raiffeisen Bank emerged as the standout performer, generating 107.3 billion rubles (about $1.2 billion), which represents 4.08% of the Russian banking system’s total profit for the period. Other significant contributors include ICBC Bank, OTP Bank, Bank of China, and Credit Europe Bank.

The KSE reported that this increase in profits “demonstrated surprising financial resilience despite ongoing geopolitical tensions and international pressure.”

The research also revealed that at least three major international banks—UniCredit, Citigroup, and JPMorgan Chase—have either suspended activities or are in the process of exiting the Russian market. However, this has not prevented the remaining foreign banks from maintaining and even increasing their profitability.

According to the report, while the foreign banks’ asset presence has contracted, their net profit continues to grow, outperforming local financial institutions.

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