Otkritie and Binbank are absolute leaders in losses

Russian banks have published reports for the first nine months.
The banks that came under the procedure of recovery from the top 20 on the assets of FC Otkritie and Binbank became absolute leaders in losses for the first nine months of 2017. Their total (together with the satellite banks) negative result amounted to almost 500 billion rubles. As follows from the accounts of banks, not in their favor so far and the dynamics of the funds of individuals and legal entities. According to analysts, the situation with new outflows can be quickly broken, but compensation for the accumulated loss is a "task for several years".

As follows from the regular reporting for the first nine months, the absolute leader in losses was the bank "FC Otkritie" - 279 billion rubles. The bank, Trust, which he sanated, also showed a loss of 72 billion rubles. The losses of the growth bank, sanitized by Binbank, for the same period amounted to 82.8 billion rubles. The results of Binbank itself were also slightly better: as of October 1, it received a loss of 32 billion rubles. The total loss of these credit institutions amounted to 467 billion rubles.

Recall, Binbank is being sanated since September 21, about the transfer of FC "Otkrytie" (and together with it, the Trust, sanated by FC Otkryt) to the Fund for the consolidation of the banking sector became known on August 29. Moreover, both pilot cases using the rehabilitation fund go to the largest credit institutions: "FC Otkrytie" is one of the ten largest banks, Binbank - in the top twenty. As in early October, the Deputy Chairman of the Bank of Russia Vasily Pozdyshev said, the financial recovery of FC Otkritie will require about 450 billion rubles. The rehabilitation of Binbank will require another 350-370 billion rubles.

The results of FC Otkritie and Binbank have seriously sagged the overall financial results of the banking sector. As follows from the Central Bank's report, in general, in the banking sector, the profit for January-September compared to the indicator for January-August (997 billion rubles.) Decreased significantly (to 675 billion rubles.) (See "Kommersant" on November 11). The growth of reserves in September was 6.5%, and as a result, since the beginning of the year, reserves in the industry have increased by 13.6%, to 6.2 trillion rubles.

Although both banks are quite active in attracting deposits from the population, offering relatively high (in comparison with competitors from the top 20 in terms of assets) rates and attractive terms, while the dynamics are not in favor of these players. So, by the end of September, the outflow of individuals' deposits from Binbank amounted to 49.25 billion rubles., From the bank Trust, depositors collected 2 billion rubles. Outflow from the Growth Bank rather symbolic - 16 million rubles. In FC Otkrytiye on deposits of individuals an inflow, but on the scale of the bank itself is insignificant - 2.3 billion rubles. Outflows of legal entities' deposits from FC Otkrytie amounted to 44 billion rubles in September, 25.5 billion rubles from Binbank. At the same time, Binbank increased its funds from the Bank of Russia by 153 billion rubles.

In early September, the Central Bank announced the introduction of a new method of supporting banks (see "Kommersant" on September 5), developed in analogy to the mechanism of emergency liquidity provision, which is widespread in international practice. The reporting figures appear to have been provided under this mechanism. In any case, the co-owner of Binbank Mikail Shishkhanov last month talked about getting the bank such help in an interview with RIA Novosti. The next day after receiving liquidity support, the Central Bank decided to reorganize through the Banking Sector Consolidation Fund. At the same time, FC "Otkrytie" in September had already reduced its debts to the Central Bank by 350.5 billion rubles.

According to Stanislav Volkov, the head of the validation department of the rating agency Expert RA, the situation with the outflows of individuals' deposits in FC Otkritie and Binbank is likely to improve already in October-November "as the information background around these banks improves." "Compensating for accumulated losses is a matter of several years. And it can never happen at all - for example, before the completion of this process, one bank can be liquidated by merging with another, "said Mr. Volkov.