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Weekly Lists
March 22, 2019 www.intellinews.com I Page 30
bne:Banker
Moody's downgrades Vostochny Bank central to Baring Vostok case
Moody's Investors Service has downgraded Orient Express Bank's (OEB’s or Vostochny Bank’s) local and foreign currency long-term bank deposit ratings to Caa1 from B3, the agency said on March 15. The outlook on the bank's long-term deposit ratings changed to Negative from Rating under review.
OEB is central to the charges pressed against Michael Calvey, the US-citizen founder of Baring Vostok, Russia’s biggest and most successful private equity fund.
The "one-notch downgrade of the long-term ratings and assess- ments reflects corporate governance weaknesses at OEB reflected by a material understatement of problem assets on its balance sheet, as well as an ongoing conflict between its largest share- holders which could disrupt a planned RUB5bn share issuance," Moody's commented.
Montenegro’s banking sector posted a net profit of €27.27mn in 2018, down 22.3% y/y, according to bne IntelliNews calculations based on financial reports published on the website of the central bank (CBCG). This came after in 2017, the banking sector’s profit jumped nearly five times to €35.1mn.
The profit in 2018 was negatively affected by the bad performance of two troubled banks, Invest Banka Montenegro (IBM) and Atlas Banka, both owned by businessman Dusko Knezevic.
Atlas Banka and IBM were put under temporary administration
by the central bank as its audit showed that the capital of the two lenders did not comply with the minimum risk requirements. While IBM will go bankrupt, Atlas Bank decided to increase its capital and can be stabilised.
Bank of Georgia will start the marketing of a debut additional tier 1 (AT1) subordinated eurobond next week, Sberbank announced in a note to investors on March 14.
Georgia's largest lender by assets, Bank of Georgia stated it had total assets of GEL14.8bn ($5.5bn) as of the end of last year.
The marketing of the eurobond will take place in London, Switzerland and Asia. The raising of subordinated capital is probably viewed
by the bank as a source of long-term funding to enhance both its mortgage lending and the FX component of its capital.
Troubled Atlas Banka, IBM drag down net profit of Montenegro’s banking sector in 2018
Bank of Georgia
to market debut subordinated eurobond