24 Aug 2009 18:09

Sberbank sees earnings plunge 91.7% to 6.8 bln rubles in Jan-July

MOSCOW. Aug 24 (Interfax) - Sberbank saw net profit under Russian accounting standards (RAS) plummet 91.7% to 6.8 billion rubles in January-July 2009 from 81.8 billion rubles in the same period of 2008, the bank said in a statement.

Net profit totaled 1.5 billion rubles in July after the bank posted earnings of 5.3 billion rubles in the first half of 2009.

The bank spent 217.6 billion rubles on loan provisions in the seven months compared to 181.2 billion rubles in the first half of the year. Loan provisions grew 20% in July.

Equity declined 0.2% to 1.336 trillion rubles in July after the bank issued a part of its subordinated Eurobonds. Equity grew 15.5% in the first seven months from 1.157 trillion rubles on January 1, while the bank's capital adequacy ration stood at 22.9% on August 1.

The bank said earlier that equity declined 1.3% in June to 1.34 trillion rubles. The bank said the decline in June could be attributed to 11 billion rubles in dividend payments for 2008 and a 6-billion ruble increase in investment in the charter capital of subsidiary Sberbank Capital.

Sberbank saw overdue debt grow to 3.2% of its total loan portfolio in July from 2.8% on July 1.