Report: Bank Otkritie sees retail loan portfolio rising 30% in 2018

MOSCOW, Dec 26 (PRIME) -- Russia’s Bank Otkritie Financial Corporation expects its retail loan portfolio to rise by 30% in 2018, while the corporate loan portfolio may grow by up to 40%, CEO Mikhail Zadornov said in an interview to Rossiya 24 television channel broadcast on Wednesday.

“Our portfolio of retail loans is to grow by about 30% this year, which is faster than the market by about 50%. We understand that these figures are small now…Regarding the corporate loan portfolio…It may rise by even more than 30% this year. I think that the portfolio of corporate loans may rise by about 40%, if we combine corporate, small, and medium-sized businesses,” he said.

The corporate and retail loan portfolios of the bank may expand by about 70% in 2019, he said.

The bank forecasts its net profit calculated under International Financial Reporting Standards (IFRS) to amount to 90–95 billion rubles in 2018, while insurer Rosgosstrakh – part of Otkritie’s banking group – will also receive a profit. B&N Bank will be close to a breakeven point under IFRS, he said.

Zadornov said that a lot of investors may buy the Otkritie–B&B Bank merged bank. “We may carry out an IPO (initial public offering) at an exchange, where ordinary Russian citizens…will be able to partake. We will also make an offer to foreign investors, as there are special funds that invest money in the Russian financial sector,” he said.

(68.7448 rubles – U.S. $1)

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