Move to IFRS 9 reduces Bank Saint Petersburg's capital 2.3 bln rubles, loan portfolio down 7 bln rubles
MOSCOW. May 29 (Interfax) - The move to IFRS 9 has reduced Bank Saint Petersburg's capital by 2.3 billion rubles, falling within the 2.6 billion ruble reduction provided for in the forecast, deputy chairman Konstantin Balandin said in a conference call on Tuesday.
"On the whole the implementation of IFRS 9 has enabled us to reduce provisions by 4.4 billion rubles," he said. Baladin said that the bank had created additional provisions of 1.3 billion rubles, but dissolved them due to a 0.6 billion ruble reevaluation of the portfolio and the writing off of loans worth 5.1 billion rubles.
The total loan portfolio shrank 7 billion rubles due to the implementation of IFRS 9.
Bank St Petersburg's equity capital to IFRS was 70.9 billion rubles as of December 31, 2017, up 16.5% for the year. The capital adequacy ratio in accordance with Basel Committee regulations was 16.7% at year-end 2017 and Tier 1 Capital - 12.4%. The share of provisions in the loan portfolio fell to 11.0% from 11.2%.