The Bank of Moscow has posted a FY 2010 net profit of 68.2 billion roubles under IFRS.
The net result slumped from FY 2009 net profit of 717 million roubles, with a 91.2 billion charge booked in 4Q 2010 to cover impairment of corporate loans provided by the previous management, and reserves for impairment of assets in other banks and client loans jumping to 105 billion roubles from 30.8 billion roubles posted in FY 2009.The bank noted its customer accounts and deposits had increased 26.9% over the course of the year to reach 543.1 billion.Bank of Moscow has been at the centre of a protracted hostile takeover from VTB resulting in the exposure of extensive related party lending, and a Central bank backed support mechanism which will see the Deposit Insurance Agency provide 295 billion roubles at 0.51% and VTB provide additional capital of 100 billion roubles by 2013.Bank of Moscow says its total capital adequacy ratio and Tier 1 ratio remain above BIS minimum requirements at 8.7% and 5.4% respectively, and added that it expects to deliver a net profit of 3 billion roubles for FY 2011, emphasizing that the Bank of Moscow Group has met every covenant on its public debt and never defaulted.