Bank Severnaya Kazna’s losses come to 1.24 billion RUR

The net losses of Bank Severnaya Kazna (the asset of Alfa-Bank) increased by 2,944,317,000 RUR, or 187.13% last year: the bank’s losses amounted to 1,573,449,000 RUR in 2008 and to as much as 4,517,766,000 RUR in 2009. For one, the losses rose by 121.584 million RUR, or 37.2% in the last quarter of 2009 compared with the third quarter’s figure of 205.267 million RUR. Bank Severnaya Kazna explains the increase in losses has to do with the need to set up debt reserves.

Bank Severnaya Kazna’s net loss (now the asset of Alfa-Bank) was officially reported to have exceeded 1.52 billion RUR in the fourth quarter of 2008. A quarter earlier, the loss figure came to 60.507 million RUR. This means the net loss increase amounted to 1,464,444,000 RUR, or 2,240.29%. The bank claims the reason for net loss growth is their selling their securities portfolio and creating debt reserves.

The net loss of Bank Severnaya Kazna rose by over 120% in the second quarter of 2009, that is, from 1.2 billion RUR on April 1, 2009 to 2.7 billion RUR on July 1, 2009. The bank explains this has to do with the company’s need to set up reserves for loans and debts.

Bank Severnaya Kazna’s stockholders thought it best not to pay any share dividend for 2009 because the bank sustained losses last year. According to the company’s official report released at the AGM on June 1, 2010, Bank Severnaya Kazna’s losses amounted to 4.63 billion RUR in 2009. The stockholders decided that the losses should be partially covered by the leftovers of profits left undistributed in the previous years; namely, 117.2 million RUR worth of losses will be compensated in this way. Also, 699.6 million RUR worth of share-issuing profits and 30.83 million RUR from the bank’s reserve

The losses incurred by Bank Severnaya Kazna were actually planned by the management of Alfa-Bank, the new owner of the business, Alfa-Bank’s Chief Operating Officer Valeriy Novikov announced in the course of an online conference held by the two banks. ‘Bank Severnaya Kazna’s financial performance indicators look just like we expected them to,’ he said. In fact, Bank Severnaya Kazna’s losses increased by 2,944,317,000 RUR, or 187.13% last year compared with the year 2008. The bank’s net loss amounted to 1,563,449,000 RUR at the end of 2008 and to 4,517,766,000 RUR at the end of 2009. Bank