OREANDA-NEWS. October 23, 2009. On 22 October, Raiffeisen Bank Aval < BAVL UZ U/R > announced that its loss amounted to UAH 0.5bn in 3Q09 (down 30%, q/q). The main loss factor was the increase in the bank's loan reserves by UAH 1.5bn in 3Q09, which was offset by the net interest income of UAH 1.1bn.  The total BAVL's loss amounted to UAH 1.5bn in 9M09.

Millennium Capital sees the news to be neutral for BAVL, since its loss was mainly related to the risk hedging, rather than to its operational activity. By Millennium Capital’s estimation, the amount of bank reserves now reflects about an 18% share of problem loans in its credit portfolio. This amount corresponds to the market average and seems to be an indication of a reasonable risk management in the bank.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of tickets selling for its flights due to high arrearage to the creditors of the company.