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Report: Otkritie's pension funds, Rosgosstrakh may need capital boost in 2018

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Report: Otkritie's pension funds, Rosgosstrakh may need capital boost in 2018

Units of Otkritie Financial Corp. Bank, especially pension funds, may need additional capital in 2018, news agency TASS reported May 24, citing Otkritie chief Mikhail Zadornov.

Zadornov said the recapitalization of the pension funds has not yet been completed, and that some assets that do not generate revenues still need to be removed from their balance sheet. A small capital boost may also be required by Rosgosstrakh Insurance Co. PJSC, which is controlled by Otkritie, Zadornov was cited as saying.

The recapitalization could be carried out in the first half, the executive added, estimating its value at between 20 billion Russian rubles and 30 billion rubles.

Reuters reported earlier in May that the Russian central bank plans to inject a further 18 billion rubles into Otkritie's pension funds. Rosgosstrakh and the pension funds already received 42.2 billion rubles and 42.9 billion rubles, respectively, in 2017 as part of the 456.2 billion ruble bailout package for Otkritie Bank.

Zadornov was also cited by TASS as saying Otkritie could post a small profit for 2018.

As of May 24, US$1 was equivalent to 61.53 Russian rubles.