The EBRD reported a net profit for 2017

© RIA Novosti / Alexei Vitvitskiy in photobacteria the European Bank for reconstruction and development in Luxembourg. Archival photoThe EBRD reported a net profit for 2017© RIA Novosti / Alexei Vitvitskiy the image Bank

The European Bank for reconstruction and development (EBRD) in 2017, reduced net profit by 22% to 772 million euros, the report said financial institution.

The main reason for the decline in profit refers to the reduction of income derived from investments in fixed capital projects in the countries where the Bank operates. In 2017 this figure fell to 332 million euros against 423 million in 2016.

However, EBRD increased its financing of projects to 9.7 billion euros against 9.4 billion in 2016. The number of projects in which investment was made, increased to 412 378 against a year earlier.

Bank’s net interest income fell to 754 million euros from 774 million in 2016. The share of overdue loans (NPL) in the Bank’s portfolio decreased to 3.9% from 5.5% a year earlier.

The EBRD shareholders in July 2014 adopted the decision to freeze investment in new projects in Russia due to the complication of the geopolitical situation and sanctions from the US and Europe. Russia the decision on such a freezing deems improper and harmful for the organization itself. In October 2017 the volume of the portfolio of EBRD investments in Russian assets, according to the Bank, amounted to € 3.5 billion.