Support The Moscow Times!

Alfa Bank Eases Provisions, Boosting Profit

Alfa Bank, the country's biggest privately owned lender, reported a sharp rise in first-half net profits to $296 million on Friday, as provisions eased.

Russian banks have been hit hard as bad loans mushroomed when the economy suffered from the first contraction in a decade, but the sector is now quickly recovering with players such as VTB and Sberbank aiming to reach pre-crisis profits this year.

Alfa Bank, ranked among the country's top-10 lenders by assets, posted a 12 percent increase in net margin before provisions to $640 million, but its profit jumped to $296 million for the first six months of 2010 from only $6 million for the same period of 2009, the bank said on its web site.

Provisions for loan impairments decreased to $168 million from $395 million a year ago, while loans to customers added just 2 percent to $13.7 billion compared with the first six months of last year.

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.