MOSCOW, September 29. /TASS/. Net profit of Russia’s banking sector in the coming three years is expected between 3.8 trillion and 4.5 trillion rubles ($45-53 bln), with no major growth projected, First Deputy Chairman of the Management Board, Chief Financial Officer Dmitry Pianov said.

"We expect the banking sector’s profit to fluctuate between 3.8 trillion and 4.5 trillion rubles in the next three years, which means we do not project any significant growth," he said during a conference call.

According to Pianov, there are two factors here. "First, a slowdown in the reduction of the key rate and competition for clients could dampen the growth of banks' net interest margins, and even lead to a decline for some market players. Second, profit growth driven by portfolio expansion could be offset by high allocations to reserves," he explained.