Bank Severnaya Kazna’s asset value drops 53%

The financial performance of Bank Severnaya Kazna (Alfa-Bank’s asset) went from bad to worse throughout the year 2009. For one, the bank’s asset value declined by 53%, from 43,637,835,000 RUR on January 1, 2009 down to 20,417,266,000 RUR on January 1, 2010. The asset value decreased by 21.8% (or 5,691,177,000 RUR) in December 2009 alone.

The bank reports its assets depreciated because of the need to meet its liabilities to both businesses and private individuals and to pay off interbank loans. Also, most of the bank’s loan recipients paid off their loans. Finally, the bank had to assign its rights of demand regarding its loan agreements with private individuals.

Bank Severnaya Kazna was acquired by a new owner at the end of 2008. The bank is therefore to go in liquidation, with all its assets to be transferred to Alfa-Bank.

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