Evgeny Bogachev: “By and large “Ak Bars” bank worked positively last year”

For 1 January 2009 stockholder’s equity capital of “Ak Bars” bank has made 28, 241 bln. roubles. For past year the capital decreased by 248 mln. roubles. Annual meeting of JSC “Ak Bars” bank shareholders was held in Kazan chaired by Robert Musin. RT Prime Minister Rustam Minnikhanov, Chairman of RT National Bank Evgeny Bogachev and others took part in the meeting.

Chairman of JSC “Ak Bars” bank management Robert Minnegaliev presented the annual report for the participants. “2008 was a year of considerable influence of world financial crisis on Russian economy. A dynamic growth of Russian economy in the first half of 2008 year which was based on record export income and intensive expansion of bank crediting slowed down in the second half year under the influence of export prices decrease and worsening of conditions of external borrowings. The world economic crisis mostly influenced in the second half year. It exposed in outflow of capital, sudden and strong decline of stock market and a sharp lack of liquidity”, - he informed.

By and large, last year investments in bank sector from the state made 4,4 trillion roubles, including allotment of subordinated credits, provision of readjustment of credit organizations, placement of budget funds in deposits of commercial banks. In the midst of current macroeconomic situation, the activity of bank sector in 2008 slowed down. Thus, last year, the increase of assets in bank system made 39,2 %; in 2007 the rate was 44,1 %.

Robert Minnegaliev informed that by the results of last year past due arrears have considerably increased. The level of past due arrears to the sum of credits made 1,3 % for June, 1, 2008; 2,1 % - for January, 1, 2009.

OOO “Sredne-Volzhskoe expert bureau” and CJSC “PricewaterhouseCoopersAudit” held the audit of JSC “Ak Bars” bank annual report for 2008 financial year. The experts didn’t have any serious complaints.

Chairman of RT National Bank Evgeny Bogachev said that by and large “Ak Bars” bank has worked positively and coped with tasks.

Summing up, RT Prime Minister and member of Board of Directors Rustam Minnikhanov said: “We are going through a difficult crisis period. Nevertheless, Tatarstan bank system is stable enough to stand a challenge. We have to reorganize our economy. Therefore we are bringing changes in the republican budget, reduce state and municipal expenses. Anti-crisis measures are being taken in the republic and in the country”.