“The financial results of the bank for 2009 amounted to 4,3 billion rubles in net loss or loss before tax of 4.2 billion rubles. The key factor that caused negative financial result for the year, it became dosozdanie reserves for loan portfolio a total of 13.7 billion rubles. The bulk of the reserves was formed in the third quarter of 2009 amounting to 9,3 billion rubles, which is graded as a net profit of the first half of 2009 (345 rubles) and the fourth quarter of 2009 (2 , 4 billion rubles), “- explains the bank its results.

RESERVES

bulk of reserves established in 2009, due to the deterioration of corporate financial reporting borrowers in the first half. In accordance with the provisions of the Bank of Russia, the bank was forced to generate higher reserves for loans such borrowers, even with timely services to their commitments.

“Since September 2009, the Bank consistently generates net income, reflecting about his ability to absorb the negative effects associated with deterioration in credit quality borrowers. An additional positive factor is the reduction in the volume of overdue credit portfolio to 28.0 billion rubles at the end of the third quarter of 2009 to 22,4 billion rubles at the end of the year (reduced by 20 , 1%). As of December 31, 2009 level of reserves cover arrears amounted to 118% “, – the bank said.

” Uralsib used the favorable situation on the equity market, as evidenced significant growth in net income on securities transactions, which amounted to 4.7 billion rubles for 12 months of 2009. This result was established both by trading in equity and fixed income financial instruments and the revaluation of the securities portfolio.

A similar pattern was observed in part of the income from dealing in foreign currency and precious metals, that total for the year reached the 1 billion rubles.

ASSETS AND LOANS

During 2009 the bank’s assets declined by 11% – to 379 billion rubles, major factor in the reduction of assets was to reduce the loan portfolio.

loan portfolio since the beginning of the year fell to 201.7 billion rubles (23,8%). The volume of loans to retail customers decreased to 70.0 billion rubles (15,3%), loans to corporate clients – to 131,7 billion rubles (27,6% compared with the beginning of the year). “A similar pattern was associated with more stringent risk management systems in crisis”, – explained in the bank.

As a consequence, the structure of assets there have been qualitative changes in the direction of improving the liquidity of the bank. Value of loan portfolio of customer accounts dropped to 85% at the end of the year compared with 124% at the end of 2008.

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