State-owned JSC Russian Agricultural Bank will need another capital boost from the federal budget in 2018, with the funds to be used to comply with capital adequacy requirements and to issue more loans, Vedomosti reported March 20.
Management board Deputy Chairman Kirill Liovin said the bank is in discussions with its shareholder, the Federal Agency for State Property Management, regarding a potential capital hike and could also raise financing from the market via the issuance of subordinated bonds. The executive did not specify the size of the lender's capital needs.
Russian Agricultural Bank has received around 300 billion Russian rubles in additional capital from the state since 2010. In 2017, the bank obtained a 50 billion ruble capital injection and it was expected at the time that the funds would keep it going throughout 2018, the newspaper noted.
The bank posted a 2017 net loss of 19.5 billion rubles under International Financial Reporting Standards, down from a loss of 58.9 billion rubles a year earlier, Vedomosti said, pointing to high loan loss provisions as the main reason for the lender's losses.
As of March 20, US$1 was equivalent to 57.53 Russian rubles.