Deutsche Bank Russian profits leapt in 2022, even as assets dropped

Deutsche Bank’s (DBKGn.DE) Russian subsidiary’s profits jumped by almost six times in 2022 to 5.4 billion roubles ($66.42 million), Russian audit documents showed, the latest example of a foreign lender booking strong earnings in the Russian market.

Foreign banks have stepped in to take business from Russian lenders who fell under sweeping Western sanctions imposed following Moscow’s decision to send tens of thousands of troops into Ukraine in February last year.

Deutsche Bank said it would wind down its business in Russia in March 2022, joining other foreign lenders in leaving the country. It had already reduced its Russian footprint in recent years and is continuing to de-risk its Russian IT operations, including relocating staff.

Profit for the period leapt by more than 480% to 5.4 billion roubles. However, total assets dropped 36.3% to 81.6 billion roubles.

Net interest income jumped more than 10 times to just over 7 billion roubles. Russia lifted its key rate to 20% in an emergency move after Moscow launched what it calls a “special military operation”, before gradually lowering it to 7.5%.

This report’s information was first seen on REUTERS; to read more, click this link.