2008 net profit drops 22.5% at Energomashbank

PRIME-TASS. Energomashbank’s FY08 IFRS net profit, according to its financial statement, sank 22.5% y-o-y to Rub 31.39 mln.

Meanwhile, the lending institution’s pre-tax profit jumped by 15.4% to Rub 66.11 mln, clients’ funds soared 37.2% to Rub 3.58 bln and assets surged by 41.3%, reaching Rub 4.66 bln as of December 31, 2008.

As the lender pointed out in its documents, the continuing global financial crisis also gave rise to such trends as fewer possibilities to raise funding on capital markets, falling liquidity positions in the banking sector and regular hikes of interest rates on the inter-bank lending market, as well as extremely heavy volatility on stock and FX markets. The bank’s management is unable to make accurate forecasts for the depth of the impact on the bank’s financial standing from continuing deterioration of liquidity positions on financial markets and growing instability on foreign currency and equity markets. Nevertheless, the lending institution’s management intends to promote to corporate business for years ahead after the reporting date and respond to risks incidental to banking operations.