Agrobanka reported pre-provisioning profit of RSD 771.1m (up 809% q/q and 136% y/y) in 2Q09, well ahead our expectation for RSD 228.9m. The stronger bottom-line was mainly attributable to better-than-expected net trading gains as well as a lower-than-expected cost of risk and net provisioning release of RSD 128m. Apart from this, the results reflected weakening margins (down 256bp q/q on rising cost of funds), relatively strong fees, and a slowdown in lending growth. Costs came in broadly in line with expectations, reflecting no major cost savings initiatives. There is no consensus estimate available. Overall, do not expect the results to have a major trading impact, due to the uncertain outlook for the sector and light trading volumes.