28 Jul 2022 16:55

Otkritie cuts volume of forex assets nearly 66%, awaiting further devaluation of balance sheet

MOSCOW. July 28 (Interfax) - Otkritie Bank has cut the volume of its forex assets nearly 66% to $3.5 billion since the beginning of the year, CEO Mikhail Zadornov told reporters.

Otkritie had $9.5 billion on its balance sheet prior to the start of the military operation in Ukraine and the subsequent sanctions imposed against large Russian banks. The amount had reduced to $3.5 billion as at July 27.

"In September, we should have no more than $2 billion left," Zadornov said, indicating that part of the foreign currency loans is being repaid, and part is being converted into rubles.

Otkritie's corporate loan portfolio contracted 2.4% to 1.4 trillion rubles in the first half of the year, while the retail loan portfolio grew 13.5% to 670 billion rubles.

Legal entities' funds on the bank's balance sheet declined 10.6% to 1.17 trillion rubles in the first half of the year, and individuals' funds decreased 4.4% to 860 billion rubles.

The bank generated a net profit of 5.7 billion rubles to Russian Accounting Standards (RAS) in January-June 2022, with regulatory capital totaling 369 billion rubles at the beginning of July, and the general capital adequacy ratio was 13.7%.