Bank St. Petersburg’s first-quarter profit slumped 94 percent because of rising provisions on bad loans and higher interest expenses.
Net income dropped to 123.3 million rubles ($3.8 million) from 2.09 billion rubles a year earlier, the lender based in Russia’s second-biggest city said today on its website.
The share of overdue loans to total lending expanded to 6 percent from 5.7 percent at the start of the year, Bank St. Petersburg said.
“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 forecast.”
The lender’s share price slumped as much as 3.1 percent and was down 2.5 percent to 55.65 rubles at 1:01 p.m. in Moscow.
To contact the reporter on this story: Jason Corcoran in Moscow at email@example.com
To contact the editor responsible for this story: Torrey Clark at firstname.lastname@example.org