October 11, 2017 / 9:00 AM / 9 months ago

Russian c. bank sees bailout hitting banking sector's earnings

MOSCOW, Oct 11 (Reuters) - Russia’s banking sector earnings in the first nine months of 2017 were hit by the central bank’s rescue of troubled lenders, the Bank of Russia said on Wednesday.

Overall banking sector profit fell to 675 billion roubles ($11.66 billion) in January-September from the 997 billion roubles earned in January-August, the central bank said.

The sector’s profit was affected by the negative financial results of banking groups that are now in the process of financial rehabilitation with the use of a new bailout mechanism, the central bank said in a monthly report.

In August, the central bank had to bail out Russia’s largest private lender, Otkritie.

Within a space of one month, the central bank had to rescue another private lender, B&N Bank.

$1 = 57.8857 roubles Reporting by Andrey Ostroukh, editing by Louise Heavens

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