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Russia bank bailout fallout hands loss to pension fund Budushchee
November 7, 2017 / 9:58 AM / 17 days ago

Russia bank bailout fallout hands loss to pension fund Budushchee

MOSCOW, Nov 7 (Reuters) - Budushchee, one of Russia’s largest private pension funds, posted a loss of 2.6 billion roubles ($44.42 million) in the first nine months of this year, fund documents showed.

Budushchee said the loss was mainly due to the re-evaluation of financial assets including stakes in bank Otkritie and insurer Rosgosstrakh.

The fund, controlled by the family of businessman Boris Mints, owns a 4 percent stake in Otkritie, which was taken over by the central bank in August.

As a part of the bailout, shareholders may see their stakes written off in full. Rosgosstrakh is also being bailed out as a part of the Otkritie group’s financial assets.

Budushchee, which is Russian for “future”, has 4.5 million clients and 300 billion roubles of pension funds under management.

Excluding the one-off impact from the writedown of financial assets, its January-September pretax profit would be 3 billion roubles, the fund said.

It saw a net profit of 4.6 billion roubles in the same period last year.

Nikolai Sidorov, chief executive of Budushchee, said in a statement the fund’s financial results will remain under pressure at least until the end of 2017 if the central bank does not rule out the prospect of writing off Otkritie shareholders’ holdings.

Budushchee also owns a 10 percent stake in Promsvyazbank, Russia’s tenth largest lender by assets, and a 3 percent stake in Credit Bank of Moscow, the country’s ninth largest lender.

$1 = 58.5355 roubles Reporting by Katya Golubkova; editing by Jason Neely

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