Outflow of customer deposits stops – Belgazprombank interim administration
<p> MINSK, Aug 5 - PrimePress. The interim administration of Belgazprombank OJSC said in the official press release posted on the bank’s website on August 5 that the outflow of customer deposits had stopped as of August 1, 2020. </p> <p> </p> <p> According to the previously published financial statements, Belgazprombank customer deposits decreased by around 30% quarter on quarter in 2Q20. </p> <p> </p> <p> The overall outflow of legal entities since the day of the appointment of the interim administration (June 15, 2020) was only around 1% of the total number of clients (legal entities), reads the report. </p> <p> </p> <p> The cessation of the outflow of customer deposits and support provided by the National Bank of Belarus has resulted in an improvement in the liquidity coverage ratio, which increased to 115.7% since the beginning of the month, providing a margin of safety to comply with the standards established by the regulator, the bank says. </p> <p> </p> <p> Late June saw a recovery of the positive dynamics of the deposit portfolio of legal entities and individual entrepreneurs. This trend continued in July with a 5.8% increase in corporate clients’ deposits. </p> <p> </p> <p> In July, Belgazprombank received Br10.3 million ($4.222 million at the exchange rate of the National Bank of Belarus) in profits. The return on assets is tentatively estimated above banking system average, standing at 1.9% as of August 1, 2020. </p> <p> </p> <p> The interim administration under ex-head of the National Bank of Belarus Nadezhda Yermakova was appointed to Belgazprombank on June 15, 2020 by resolution No.192 of the National Bank of Belarus of June 14, 2020. The Financial Investigations Department of the State Control Committee of Belarus searched the bank’s office on June 11 as part of the criminal case on tax evasion, and detained 20 persons, including, according to some sources, two deputy chairs of the Board. </p> <p> </p> <p> Primary shareholders (Russian Gazprom and Gazprombank) called the actions of the National Bank and Belarus’ law enforcement illegal and refused to cooperate with the interim administration. </p> <p> </p> <p> For two decades, Belgazprombank was headed by Viktor Babariko, who attempted to run for president in the election scheduled for August 9. Babariko was detained on June 18. He said that no complaints had been filed against the bank and related companies. He believes the actions of the authorities are politically motivated. </p> <p> </p> <p> President of Belarus Alexander Lukashenko said on August 1 that he was committed to preserve and support Belgazprombank, even if its shareholders–Gazprom and Gazprombank–pulled out. </p> <p> </p> <p> Belgazprombank OJSC was established in 1990 as an authorized bank of Gazprom Group in Belarus. Russian Gazprom PJSC and Gazprombank JSC own 49.66% stake in Belgazprombank each; Gazprom Transgaz Belarus – 0.49%; the Republic of Belarus represented by the Ministry of Energy of Belarus – 0.097%. Belgazprombank is assigned to the system significance Group I. End </p>
2020-08-05
Primepress
Outflow of customer deposits stops – Belgazprombank interim administration
MINSK, Aug 5 - PrimePress. The interim administration of Belgazprombank OJSC said in the official press release posted on the bank’s website on August 5 that the outflow of customer deposits had stopped as of August 1, 2020.
According to the previously published financial statements, Belgazprombank customer deposits decreased by around 30% quarter on quarter in 2Q20.
The overall outflow of legal entities since the day of the appointment of the interim administration (June 15, 2020) was only around 1% of the total number of clients (legal entities), reads the report.
The cessation of the outflow of customer deposits and support provided by the National Bank of Belarus has resulted in an improvement in the liquidity coverage ratio, which increased to 115.7% since the beginning of the month, providing a margin of safety to comply with the standards established by the regulator, the bank says.
Late June saw a recovery of the positive dynamics of the deposit portfolio of legal entities and individual entrepreneurs. This trend continued in July with a 5.8% increase in corporate clients’ deposits.
In July, Belgazprombank received Br10.3 million ($4.222 million at the exchange rate of the National Bank of Belarus) in profits. The return on assets is tentatively estimated above banking system average, standing at 1.9% as of August 1, 2020.
The interim administration under ex-head of the National Bank of Belarus Nadezhda Yermakova was appointed to Belgazprombank on June 15, 2020 by resolution No.192 of the National Bank of Belarus of June 14, 2020. The Financial Investigations Department of the State Control Committee of Belarus searched the bank’s office on June 11 as part of the criminal case on tax evasion, and detained 20 persons, including, according to some sources, two deputy chairs of the Board.
Primary shareholders (Russian Gazprom and Gazprombank) called the actions of the National Bank and Belarus’ law enforcement illegal and refused to cooperate with the interim administration.
For two decades, Belgazprombank was headed by Viktor Babariko, who attempted to run for president in the election scheduled for August 9. Babariko was detained on June 18. He said that no complaints had been filed against the bank and related companies. He believes the actions of the authorities are politically motivated.
President of Belarus Alexander Lukashenko said on August 1 that he was committed to preserve and support Belgazprombank, even if its shareholders–Gazprom and Gazprombank–pulled out.
Belgazprombank OJSC was established in 1990 as an authorized bank of Gazprom Group in Belarus. Russian Gazprom PJSC and Gazprombank JSC own 49.66% stake in Belgazprombank each; Gazprom Transgaz Belarus – 0.49%; the Republic of Belarus represented by the Ministry of Energy of Belarus – 0.097%. Belgazprombank is assigned to the system significance Group I. End