English"Sberbank", the largest Russian bank, saw its profit drop 82% in Q3 2009, as it raised its provisions against bad loans by $3.6 billion.
In the July-September 2009 period, the net profit of the bank dropped to 4.25 billion rubles (USD144 million dollars), down YOY from 23.2 billion rubles. Analysts were expecting 4.9 billion rubles.
Provisions against bad loans amounted to 493.8 billion rubles in the July-September 2009 period, up 27% YOY.
On October 1st, bad loans accounted for 7.9% of the gross loans, up from 1.8% in the beginning of the year. The officials of the bank announced: "As a result of the deterioration of the economic environment, in Russia as well as on a global level, our overdue loans increased from 94.7 billion rubles (3.2 billion dollars) on December 31st 2008, to 436.7 billion rubles on September 30th, 2009".
The net profit of "Sberbank" dropped 88% YOY in Q3 2009, to 10.3 billion rubles.
Russian banks were badly hit the global financial crisis, which caused many investors to withdraw from the country.
It bears reminding that "Sberbank", together with Canadian car component maker "Magna International" Inc., submitted a bid to acquire German automaker "Opel". But US-based "Opel" parent "General Motors" Corp. of the US, eventually decided to keep its "Opel" division and reorganize it.
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