Agrobanka reports EUR 290 million losses

Just as it was expected, Belgrade-based Agrobanka has reported huge losses for 2011 after experiencing serious problems in last year's operations, which culminated in the decision of the National Bank of Serbia (NBS) to place the bank into receivership.

Agrobanka made losses in the amount of RSD 29.7 billion (about EUR 290 million) mainly because of the position of indirect write-off of placements and reserves that grew from RSD 4.6 billion in late September to nearly RSD 30 billion at the end of the year.

Obviously, the bank made a big number of "bad" placements, which resulted in losses that exceed by far the bank's capital.

Agrobanka's assets at the end of 2011 amounted to RSD 61.6 billion, so that the bank's market share was 2.3%

Shortly after Agrobanka published its results on the website of NBS, the business report was removed, while the only information still available on the site is that "the bank is under receivership."