Exec says Bank Otkritie sees 13 bln rbl retail profit in 2020

MOSCOW, Aug 6 (PRIME) -- The retail business of Russia’s Bank Otkritie Financial Corporation will break even in 2019 and post a net profit of 13 billion rubles in 2020, Veniamin Polyantsev, a member of the bank’s management board, told PRIME on Monday.

“We will drive the retail sector to the breakeven points next year, and the bank will make a profit of 13 billion rubles in 2020,” he said.

The bank has no plans to raise its liabilities, but plans to raise the margin through gradual cuts in interest rates, an increase of share of minimum balances, and improvement of investment products. Bank Otkritie also has no plans to go global now, he said.

He also said that the bank plans to raise its retail loan portfolio to 500 billion rubles until the end of 2020, including 200–250 billion rubles of mortgages.

Bank Otkritie has been undergoing a central bank’s bailout since 2017. In February 2018, the regulator decided to merge the bank with B&N Bank, another institution undergoing a bailout. The regulator’s Deputy Chairman Vasily Pozdyshev said later that the banks are to finish the merger in early 2019.

Bank Otkritie’s CEO Mikhail Zadornov said in May that the central bank may privatize the Otkritie banking group in 2021.

(63.4549 rubles – U.S. $1)

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