5 Aug 2020 19:18

Situation in Belgazprombank stable - temporary administration

MINSK. Aug 5 (Interfax) - The temporary administration at OJSC Belgazprombank, of which Russia's Gazprom and Gazprombank each own 49.8% of shares, said that the situation in the bank is stable.

"Fulfillment of the plan for profit, recovery of a positive dynamic for the deposit portfolio, and return on the bank's assets exceeding the average value across the banking system - Belgazprombank registered such a result for August 1, 2020," the bank said in a statement published on its website on Wednesday.

The statement additionally mentioned a slight outflow of the client base in the corporate segment. "Altogether, the outflow of the legal entity client base from the day the temporary administration was introduced in the bank amounted to just 1% of the total number of legal entity clients," it said.

The statement also said that the bank's profit had amounted to 10.3 million Belarusian rubles, or nearly $4.3 million, in July 2020, which is 1% more than the earlier approved plan.

In addition, it said that growth of funds raised from legal entities had resumed. "The last third of June showed restoration of a positive trend for the deposit portfolio of legal entities and individual entrepreneurs. This trend continued in June and led to 5.8% growth of funds of corporate business clients," the statement said.

"The emerging trend evidences a stable position of Belgazprombank, which makes it possible to fully and promptly fulfil obligations to clients, including accrual and payment of interest on deposits," it said.

The statement also said that halting the outflow of clients' funds together with support extended by the National Bank of Belarus "led to improvement of the liquidity coverage ratio (LCR) indicator, which grew 115.7%, ensuring a margin of safety for complying with the standards established by the regulator." According to the temporary administration's estimate, the bank's return on assets (ROA) as of August 1, 2020 came to 1.9%, which exceeds the average value across the banking system.

As reported, the National Bank of Belarus introduced a temporary administration to Belgazprombank as of June 15, 2020 after the Financial Monitoring Department of the Belarusian State Control Committee opened criminal cases against a number of employees, including members of the Belgazprombank management board.

On June 19, Belgazprombank's shareholders - Gazprombank and PJSC Gazprom said that the National Bank's decision to change the management of Belgazprombank was a gross violation of international legislation.