19 March 2012
Bank Vozrozhdenie published FY 2011 results under Russian Accounting Standards. Net profit for 2011 increased by 3 times to Rub 1,565.1 mln compared to Rub 521.4 mln in the previous year.
Operating income before provisions was up 29.8% to Rub 13,591.0 mln compared to the similar period of 2010 due to lower interest expenses and positive dynamics of fees and commissions. Share of non-interest income in total revenues at the level of 41% remains one of the highest across the Russian banks.
“In 2011 loan portfolio kept expanding in line with the plan, while in the segment of attractive retail lending we outpaced the sector growth. In the second half of the year amid increased uncertainty in the economy we paid greater attention to asset quality and adequate provisioning. Our efforts on funding costs optimization throughout the year resulted into serious profit growth, even above our expectations at the beginning of 2011”, — commented Dmitry Orlov, Chairman of the Management Board.
The bank’s assets rose by 9.0% for the year to Rub 181.5bln. Main growth was delivered from loan portfolio that increased by 17.0% in 2011 and comprised 68% of total assets. Loans to corporate clients before provisions grew by 16.0% to Rub 112.3bln as of January 1, 2012.
In December 2011 the bank securitized a part of its mortgage portfolio in the amount of Rub 4.1bln contributing to attraction of long-term funding and improvement of liquidity position in the long run. With regard to that volume of retail loans amounted to Rub 20.5bln as of the end of 2011, that is 22.7% higher than in the previous year.
Client funds, key funding source of the bank, totaled Rub 148.0bln as of January 1, 2012 (up 11.6% compared to the previous year) or 90.6% of the Bank’s total liabilities.
Capital of the bank increased by 8.9% for the year to Rub 18.1bln mostly driven by capitalization of profit earned. Capital adequacy ratio was 11.9%.
In accordance with the CBR requirements the bank keeps allocating provisions on possible impairment of assets. Thus, the bank recorded Rub 2.5bln in allocations to provisions, while total provisions added up to Rub 13.8bln in 2011.
Please note that consolidated financial statements of Bank Vozrozhdenie for 2011 prepared in accordance with International Financial Reporting Standards will be published on March 29, 2012.