VAB Bank stays loss-making on loan reserves in 2Q12

VAB Bank (VABANK) reported a net loss of USD 46 mln in 2Q12 vs. a USD 3 mln loss in 1Q12, as the bank boosted its impairment charges 20x qoq (+10x yoy) to USD 56 mln. The bank’s core earnings increased substantially: net interest income was up 62% yoy to USD 38 mln and net fees and commissions added 52% yoy to USD 8 mln. The pace of lending remained strong as the bank’s net loan book increased 8.9% yoy to USD 843 mln. The growth was well funded with deposit inflows: corporate facilities rose 58% qoq while retail facilities were up 11%.