Bank of Moscow posted net profit of RUB 734.7m for 2Q09 (RAS) versus a net loss of RUB 417.0m in 1Q09. The positive result can be largely attributed to growth in securities income but also to the return of some tax on profit, adjusted after 1Q09. The bank’s total deposits dropped 9.9% q/q in 2Q09, driven by the corporate segment (-12.7% q/q). Retail deposits increased 2.2% q/q in 2Q09.
We see the news as positive although the massive outflow of corporate deposits is definitely cause for concern. We expect the news to have only a limited trading impact as the market is waiting for the 1H09 IFRS results.