Vozrozhdenie Bank has posted 1Q 2009 Profit of 386 million Roubles under IFRS.

The bottom line is sharply down on the 1Q 2008 Net profit of 681 million Roubles, despite increasing assets by 18% year on year to 137.9 billion Roubles.

Also up by 18% year on year, to 99.4 billion Roubles, was the banks loan book, but the deteriorating loan portfolio quality saw Vozrozhdenie boost loan provisions by 30% quarter on quarter to 6.4 billion rubles. Deputy Chairwoman Tatiana Gavrilkina, said the move reflects the banks conservative financial approach is largely attributable for the fall in net result.

“In Q1 the bank confirmed its strong income generating capacity. However deteriorating environment eventually had negative influence on our clients that resulted in significant NPL growth. As we adhered to conservative approach in defining problem loans and relevant provisioning the final net profit was impacted substantially.”