PAO Promsvyazbank obtained an 8 billion Russian ruble profit from the sale of a noncore asset and will include the funds into its capital, Vedomosti reported Dec. 5, citing a bank spokesperson.
The transaction was concluded with a market investor, but the bank did not disclose further information on the buyer or the asset. Sources close to the bank said the lender divested some industrial assets in Russia-based Regent Holding, the newspaper noted.
The bank needs to increase capital to meet the Russian central bank's common equity Tier 1 ratio requirement, which will be set at 7.025% for systemically important banks from Jan. 1, 2018, Vedomosti said. As of Nov. 1, the lender's CET1 ratio stood at 6.58%, but the bank estimates that the recent transaction will raise the ratio to 7.4% as of Jan. 1, according to the report.
Promsvyazbank's head and co-owner, Dmitry Ananiev, told Reuters in October that the bank was planning to sell some nonperforming assets and use its profit for the nine months of 2017 to bring its capital in line with the 2018 requirements.
As of Dec. 4, US$1 was equivalent to 58.88 Russian rubles.
