12 Oct 2010 16:00

Raiffeisenbank posts 1.6 bln rubles in RAS net losses in Q3

MOSCOW. Oct 12 (Interfax) - Raiffeisenbank posted 1.619 billion rubles in net losses according to the Russian accounting standards (RAS) for the third quarter of 2010 compared to 1.307 billion rubles in net profit in the same period of 2009, the bank said in a statement.

It was earlier reported that the bank posted 8.430 billion rubles in the first half of 2010, including 2.7 billion rubles in the first quarter and 5.729 billion rubles in the second quarter.

The bank's net profit for the first nine months of 2010 came to 6.81 billion rubles.

The bank said that the net losses for the third quarter had been the result of increasing reserve transfers on possible loan losses, as well as a reassessment of forex funds and declining revenues from forex transactions.

At the same time, expenditures on reserve formation went down by 57% to 5.803 billion rubles in the first nine months in comparison with 13.6 billion rubles in the same period of 2009, the bank said in a press release.

The bulk of the reserve transfers took place in the third quarter, when formed reserves came to 3.216 billion rubles in comparison with 2.586 billion rubles for reserves during the first two quarters, the press release said.

The bank said that expenditures on reserves had gone up owing to the expansion of the corporate loan portfolio in July-September 2010 (up 6.1%).

Raiffeisenbank is a 100%-owned subsidiary of Raiffeisen International.

The bank was the ninth biggest bank by assets in Russia at the end of the first half of 2010 according to the Interfax-100, compiled by the Interfax Center for Economic Analysis (CEA).