NEYVA Bank Optimizes Branch Network to Cut Costs

26 February 2020 (09:11)

UrBC, Yekaterinburg, February 26, 2020. NEYVA Bank has put its HQ at 3A Chapayev St (total area: 5,000 m2) up for sale; the asking price has been set at RUB 413 million.

The bank’s press service informs UrBC the final decision to sell the building has been made by the bank’s management after the asset turned out to be loss-bearing in 2019, mostly because of ‘the Central Bank’s dismissing the annual estimate of the building’s value (carried out by an external contractor) and demanding that the building get re-evaluated based on the CBR’s own criteria.’

‘Under the current accounting standards, we must get our assets re-evaluated at least twice a year. Last year, NEYVA Bank contracted the well-known business Ernst & Young for the purpose. The CBR did not accept their estimates and insisted we get the building re-evaluated based on their own criteria, which we did. The new estimated value did not, unfortunately, reflect the asset’s actual market worth and had to be accounted for as a liability on our P&L statement. It’s difficult to predict what the re-evaluation situation will look like this year. Last year’s scenario might well repeat itself, meaning we’ll have to report losses. It is unclear how large the loss will be and how this will affect our meeting the CBR’s regulations. This doesn’t agree with the bank’s development strategy, so, while we accept the Central Bank’s estimates, we give the building up,’ says Chair of the Board at NEYVA Bank Pavel Yefremov.

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