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. Last Updated: 07/27/2016

Pretax Russian Bank Profits Drop for '97

The overall pretax profit of Russia's banks fell to 18.9 billion redenominated rubles ($3.10 billion) in 1997 from 35.5 billion rubles in 1996, the Central Bank said this week.

Russian banks' undistributed profit was 4 billion rubles in 1997 after 3.5 billion rubles in 1996, the Central Bank said in a statement.

Russia redenominated its ruble from the start of 1998, cutting three zeroes from the inflated currency to make one new ruble equal to 1,000 old ones.

The Central Bank said banks' pretax profit fell by 15.8 percent in October to November last year, when the turmoil on Asian financial markets prompted foreign investors to dump Russian securities for paper from developed countries.

The Central Bank last year allowed banks to transfer 1997 losses from securities to 1998.

The bank statement said the 12 biggest banks, whose assets account for 45.9 percent of total assets of the Russian banking system, decided to transfer 1997 losses to 1998.