Net earnings came in at RUB 0.59bn for 1Q09, down 98.1% y/y and 92.2% q/q, somewhat below consensus estimate of RUB 1.62bn (with a range between RUB 0.3bn and RUB 6.9bn, according to Reuters) and our expectation for RUB 6.6bn. As expected, sharply higher provisions wiped out most of the bottom-line. Better-than-expected net interest income and strong cost containment were offset by further losses on trading portfolio. While net provisioning came broadly in line with expectations. The dispersion between non-performing loans (>90 days overdue) under IFRS and RAS has widened, with reporting NPLs of 3.48% under IFRS versus 2.4% reported under RAS, however provision coverage was left higher than expected at some 150%. Overall, we expect the results announcement with visible cost containment and better net interest margin to have positive trading impact.