Rosbank's Belarusian subsidiary posts $10 mln IFRS loss for 2011
MINSK. May 28 (Interfax) - Belrosbank, a subsidiary of Russia's Rosbank , which is part of the Societe Generale group, reported an IFRS net loss of Br81.83 billion ($9.96 million at the current rate) for 2011, compared to a net profit of Br46.2 billion in 2010.
In IFRS reporting for 2011, Belarusian banks apply IAS 29 for financial reporting in conditions of hyperinflation, which provides for recalculation of comparable figures taking into account the drop in the Belarusian ruble's purchasing power in 2010-2011.
According to national accounting standards, Belrosbank had a net profit of Br41.1 billion in 2011, up 11.7% from 2010.
Belrosbank's IFRS net profit before reflection of losses on net cash position in 2011 fell 61.7% to Br23.5 billion. The loss on the net cash position, due to adjustments for hyperinflation, was Br105.3 billion, up from Br15.1 billion in 2010.
The bank's assets grew 7.9% to Br3.43 trillion in 2011. This included Br1.77 trillion in loans to clients (less provisions for depreciation), including Br714.8 billion to retail clients, down by 17.7% and 32% respectively.
Belrosbank's funds at the National Bank of Belarus increased by 250% to Br667.3 billion, funds at other banks decreased by 15.2% to Br532.2 billion, and assets in financial derivatives surged 13-fold to Br318.5 billion. Cash and cash equivalents stood at Br1.19 trillion as of December 31, 2011, up by 45.9% from a year earlier.
The bank's liabilities grew 11.5% to Br3.22 billion. This included Br1.54 trillion in client funds, including Br466.2 in retail deposits, respectively up 11.9% and down 22.2%. Funds raised from banks increased by 15.4% to BR1.46 trillion, and subordinated loans from the parent company rose 33.3% to Br133.6 billion.
Rosbank, which is 82.3956% owned by Societe Generale (France), owns 99.99% of Belrosbank. Belrosbank, which has been in operation since 2003, is the 12th largest by assets among Belarus' 32 banks.
Inflation in Belarus was 108.7% in 2011. The official exchange rate for May 28 is Br8,220/$1.