24 April 2012
Bank Vozrozhdenie published Q1 2012 results under Russian Accounting Standards. Net profit for Q1 2012 increased 1.7 times to Rub 480.5 mln compared to Rub 286.5 mln in the similar period of the previous year.
Operating income before provisions increased by 22% in Q1 2012 compared to the same period of 2011 on the back of higher net interest income and positive dynamics of fees and commissions. The bank recorded Rub 1,527 million in operating profit before provisions, 50.7% higher than in the similar period of 2011.
“Despite traditional slowdown of economic activity at the beginning of the year we have supported ongoing profit growth and increased loan portfolio in both corporate and retail segments. Work on operating efficiency remains in our focus, and in the first quarter we already saw improvement in cost-to-income ratio”, — commented Dmitry Orlov, Chairman of the Management Board.
The bank’s assets rose by 3.1% in comparison with Q1 2011 and amounted to Rub 180.3 bln. Loans to corporate clients before provisions grew by 9,6% compared to the same period of 2011 and reached Rub 117.2 bln as of April 1, 2012. Volume of retail loans was Rub 22.3 bln as of the end of Q1 2012, up 26.9% YoY (with accounting of mortgage portfolio securitized in December 2011 growth totaled 50.9%).
Client funds totaled Rub 145.5 bln as of April 1, 2012 (up 4.6% compared to the previous year) mainly driven by inflow of retail client funds, remaining the key funding source for the bank with the share of 55% in total liabilities.
Capital of the bank increased 10.3% in comparison with the same period of 2011 mostly driven by earned profit and added up to Rub 18.6 bln as of April 1, 2012. Capital adequacy ratio stood at 11.6%.
In accordance with the CBR requirements the bank charges provisions on possible impairment of assets. Thus, in Q1 2012 the bank recorded Rub 766.4 mln in allocations to provisions, while total provisions stood at Rub 14.9 bln.