Nadra Bank notches net loss of UAH 1 bln in 1H09

Nadra Bank (NADR), currently under the temporary administration by the National Bank of Ukraine, reported that its net loss came to UAH 1.0 bln in 1H09, vs. net income of UAH 56.6 mln in 1H08, it said in a company filing yesterday. Nadra’s assets as of July 1 were UAH 26.3 bln, down 13.9% yoy, and liabilities UAH 45.5 bln, down 11.2% yoy. Nadra was taken under the NBU’s temporary administration on February 10, 2009 for a one-year period. The government is planning to recapitalize the bank with state funds, following the restructuring of its debts. Nadra was Ukraine’s #10 largest bank by assets, as of April 1, according to the NBU. Andrii Parkhomenko: Although the bank did not publish its complete balance sheet and P&L statement, we suppose that the main reason for its losses was the accumulation of reserves to cover the bank’s loan portfolio. In our view, current Eurobond quotations accurately reflect the bank’s fundamentals and we see no effect from the publication of Nadra’s 1H09 results on prices.