Russia’s corporate sector net profit was down 8.5% in 2017 y/y, according to Rosstat. The trend runs counter to GDP growth, which hit 1.5% last year after contracting by 0.2% in 2016.
In nominal terms, net profit reached RUB10.3 trillion ($180bn): some 34,800 organizations brought in profits of RUB12.3 trillion, while another 12,400 faced losses of RUB1.96 trillion.
This data does not include small businesses, insurance companies, state institutions, or banks.
"This is in large part due to the strengthening of the ruble, as many Russian companies profited specifically from devaluation. The strongest growth was seen first and foremost among exporters," Bear Markets Brief said in a note.
On a sectorial level, extractive industries led the pack, where net profit was up 17.9%, and a staggering 40% for hydrocarbons. Agriculture, meanwhile, saw a worse performance despite overall sector growth, with net profit down 22.3% largely due to decreasing grain prices.