For the first half of 2020, the efficiency of banks declined by almost 4 percentage points, to 7.6%. The drop is significant, the efficiency of the banking business steadily declining, even without taking into account the deterioration of assets and the need to increase reserves. Primarily affected small banks, which reduces stable income amid falling rates.The decrease in cash flows in the banking sector and the growing losses from the sale of credit risks on the background of the pandemic has led to falling profitability of capital. “The median profitability of balance sheet capital (a measure of efficiency of use of own means of Bank.— “B”) all credit institutions in the last four quarters settled at 5.35%”— calculated by analysts of the Agency “Expert RA”. This is a significant reduction relative to the previous comparable periods. In particular, from 1 July 2018 1 July 2019 profitability was of 7.86%, for 2019 — of 6.98%.Net interest margin for the same period decreased from 6.57% to 5.39%. In “Expert RA” consider this a reduction in “moderate and partly controlled”, because banks are traditionally more promptly revise the rates on deposits than on loans. However, the return on equity of the banking sector before provisions (reflecting the operating efficiency of the Bank) for the last four quarters decreased by almost a third — from 11.33% to 7.62%. The decrease of efficiency of activity of banks to reflect losses on loans suggests that the current failure of profitability comes not from the impairment of assets and creation of additional reserves, but mainly due to the decrease in base interest and Commission income, points out managing Director for validation of “Expert RA” Yuri Belikov.For them, one of the key sources of income — the placement of excess liquidity on Deposit at the Central Bank or in the interbank market. However, interbank rates fall after the key and bring less revenues, which before barely covered operating costs. “We are now seeing only the first effects of reduced rates. In the future is low, although stable, the returns of small banks without a specific specialization and market niches will be reduced even more”,— said Mr. Belikov.Big banks, especially state-owned banks, which are the “beneficiaries of the crisis” from the perspective of redistribution, dramatic pressure on the profitability is not observed, although some of the income lost and they. On the interest income of the banking sector is influenced by the reduction of the key rate of the Central Bank and the weakening of business activity on the background of the pandemic, indicate in the PSB. But if we consider the dynamics in the context of individual banks, the situation is not so much about��homogeneous, say there. However, the performance indicators of the banking business the sector average may fall even lower taking into account the reflection losses on loans after the regulatory exemptions, said Mr. Belikov.However, an explosive credit growth in the second half will follow to issue new loans banks are ready, but be careful. But there remain points of growth, such as a mortgage, which is supported by the state program. Prime Minister Mikhail Mishustin on Monday announced the expansion of its volume with 740 billion to 900 billion rubles a Pandemic has not yet led to massive losses for banks, concludes the Director of Bank ratings Agency NKR Mikhail Doronkin. The banking sector remains profitable, however, the deterioration of asset quality causes to create additional reserves. The evaluation of the NKR, excluding Sberbank and rehabilitated banks losses from dosoznanie reserves already amounted to 393 billion rubles.— it is nine times more compared to the same period of 2019 (RUB 44 billion).Olga Sorokovikova on deposits from RUB 1 million in the top 10 bankautomat next