Alfa-Bank explains Bank Severnaya Kazna’s asset drop

‘The dramatic plummeting of the bank’s net assets last December was brought about by having to create the additional reserves to make up for the possible bad debt damages, as Bank Severnaya Kazna’s loan portfolio lost some of its strength in the winter of 2008,’ the spokesperson for Alfa-Bank said to an UrBC representative.

Bank Severnaya Kazna’s net assets actually dropped by over 7.1 billion RUR (from 43.1 billion RUR to 35.9 billion RUR), or by 16.5% in December 2008. The decrease occurred after the bank had been acquired by Alfa-Bank. The financial data to this extent were published via Bank24.ru’s official website.

‘Another reason for the net assets going down had to do with the loss occasioned by selling the bank’s securities portfolio at its current market price,’ Alfa-Bank’s representative explained.


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