Bank Forum posts net loss of UAH 283 mln in 1H09

Bank Forum (FORM) indicated yesterday in its 1H09 financial results that it posted a net loss of UAH 283.3 mln in 1H09, down from net income of UAH 41.6 mln in 1H08. The bank also said that its assets were down 6.7% during the period to UAH 19.1 bln, and liabilities by 9.3% to UAH 16.9 bln. Bank Forum was Ukraine’s #12 largest bank by assets, as of April 1, according to the National Bank of Ukraine. Andrii Parkhomenko: The bank’s reserve expenses came to a staggering UAH 481 mln in 1H09, 7.9% higher than the bank’s net interest income. The reserves only cover 7% of the bank’s assets, which is lower than the banking system’s average of 8%. The results appeared to be worse than our expectations, and we may see the bank’s Eurobond quotations decrease.