Bank St. Petersburg headed for its biggest loss in more than two weeks after saying first-quarter profit tumbled 94 percent on rising bad-loan provisions and higher interest expense.
The regional lender’s share price slumped as much as 3.1 percent to 55.30 rubles and traded at 55.65 rubles by 1:11 p.m. in Moscow, set for the biggest drop since May 23.
Net income slumped to 123.3 million rubles ($3.8 million) from 2.09 billion rubles a year earlier, the bank based in Russia’s second-biggest city said today on in a statement on its website. The share of overdue loans in total lending expanded to 6 percent from 5.7 percent at the start of the year.
“Since last autumn, the negative impact of external factors on the Russian economy and banking sector has increased significantly,” Alexander Savelyev, chairman of the bank’s board, said in the statement. “As a result, the increase in cost of funding puts more pressure on a margin than we forecasted.”
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