In the first quarter of 2015 Svyaznoy Bank reported a net loss of Rub 4.4 bln, the bank's RAS audited financial statement showed.
The lending institution's FY14 losses totaled Rub 1.38 bln, and the bank earned profit of Rub 2.5 mln in January — March 2014.
Svyaznoy Bank's assets declined by a third to Rub 29.98 bln as of April 1, 2015. Interest income (the item is primarily affected by income derived from households' credit cards, the bank noted in its financial statement) slid 49.9% to Rub 1.7 bln in 1Q. The lender's net commission income contracted 53.2% y-o-y to Rub 517.5 mln.
During the reporting period the bank bumped up loan loss provisions by Rub 99.2 mln, or by 4.9%, compared to the year-ago period.
During the quarter a net outflow of household funds came to Rub 2.5 bln (Rub 4.2 bln in the year-earlier period). The bank's corporate clientele has contracted 2.5% YTD, while funds drawn from households declined 27.1% (Rub 7.7 bln). The bank's equity has fallen Rub 3.8 bln YTD to Rub 2.98 bln.
As of April 1, 2015 the lender's capital adequacy ratio (N1.0), core capital adequacy ratio (N1.1) and core capital adequacy ratio (N1.2) were below statutory thresholds (10%, 5% and 6%) as they equaled 9.2%, 4.9% and 4.9%, respectively.
"Svyaznoy Bank has taken a number of measures to strengthen its financial statement stability, and also to draw additional capital to withstand the risks inherent to the nature and the scope of its activities," the bank noted in its financial statement.
