3 Aug 2009 16:31

Russian banks see losses from revaluation of securities fall 32% in May, 54.5% since start of 2009

MOSCOW. Aug 3 (Interfax) - Russian banks saw losses from the revaluation of securities shrink 32% to 79.8 billion rubles in May 2009 compared to the previous month, the Central Bank said on its website.

Banks reduced losses from the revaluation of securities 54.5% in January-May 2009 from 177.5 billion rubles on January 1.

The biggest amount of losses from securities revaluation was seen in February, when banks lost 191.1 billion rubles.

Russian banks boosted investment in securities 23.7% to 2.416 trillion rubles in the five months, including 0.3% in May.

Losses from the revaluation of debt securities totaled 73.8 billion rubles in May, down 38.7% from the start of the year and 22% from April. The biggest amount of losses from the revaluation of debt securities was also seen in February, when banks lost 139.8 billion rubles.

Investment in debt securities increased 20% to 2.11 trillion rubles in the five months, but declined 0.5% in May. The biggest increase in investment was seen in debt securities issued by non-residents, which grew 100% to 697.9 billion rubles in the five months (excluding revaluation) and 3.3% in May. Investment in debt securities issued by Russia also grew almost 100% to 512.5 billion rubles in the five months and 4.5% in May.

Banks had set up loss provisions for debt securities of 17.8 billion rubles as of June 1, up 100% from the start of the year and 1.3% from April.

In addition, banks posted losses of 5.96 billion rubles in January-May from the revaluation of debt securities, down 8.9% from the start of January and 73.7% from the start of April.

Investment in equity securities rose 58.4% to 306.4 billion rubles in the five months, including 6.4% in May.

Loss provisions on equity securities stood at 3.9 billion rubles on June 1, up 44.4% from January 1.