Sberbank said second-quarter profit more than quadrupled as it released reserves set aside for bad loans for the second time.
Net income climbed to 89.3 billion rubles ($3.1 billion) under international accounting standards, from 20.8 billion rubles a year earlier, the bank said Tuesday.
The lender released 8 billion rubles of reserves set aside for bad loans in the second quarter, while in the same period of 2010 it allocated 56 billion rubles against bad debts, according to the statement.
"The improving Russian economy and ongoing implementation of new risk-management and recovery procedures have positively affected loan quality," the bank wrote in the statement.
The proportion of nonperforming loans in Sberbank's portfolio fell to 6.6 percent from 7.3 percent at the end of 2010. Assets rose 5.2 percent to 9.08 trillion rubles as of June 30 from the end of last year.
The shares closed up 0.55 percent at 82.15 rubles at the close of trading in Moscow on Tuesday, after climbing 5.2 percent Monday, the most in 10 months. The yield on the lender's $1.5 billion of dollar-denominated bonds due 2015 fell 22 basis points to 4.03 percent, the biggest daily drop since June 8 based on closing prices.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
