Bank Vyatich’s net profit goes down 43%

22 January 2010 (11:41)

OAO Bank Vyatich’s net profit went down by 3,203,000 RUR, or 43% in 2009. The net profits amounted to 7.429 million RUR in 2008 and only to 4.226 million in 2009.

The bank’s profit figures dropped by 718,000 RUR, or by 52% against the third quarter of the year, in the last quarter of 2009 alone. The bank made 660,000 RUR of net profit in October-December 2009.

According to Bank Vyatich’s reports, the decrease in net profits last year stemmed from the shrinking banking transactions revenues and increased maintenance expenses. In addition, the bank received smaller advance income tax payments and had to invest in possible loss reserves.

As for the dropping net profit in the last quarter of 2009, this had to do with greater expenses related to possible loss reserves (which, in their turn, were brought about by the increase in the bank’s lending portfolio volume). What is more, the bank made less from various banking transactions. Still, the foreign currency transactions revenues and advance income tax payments were on the rise in the fourth quarter of the year; so was the bank’s interest yield. Also, the bank spent less on maintenance in the last quarter of 2009.

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