25 July 2012
Bank Vozrozhdenie published H1 2012 results under Russian Accounting Standards. Net profit for H1 2012 increased 1.7 times to Rub 1.212 bln compared to Rub 700.6 mln in the similar period of the previous year.
Operating income before provisions increased by 21% in H1 2012 compared to the same period of 2011 on the back net interest income growth by 30.8% and positive dynamics of fees and commissions. Operating profit before provisions topped Rub 2,960 million, 35.1% higher than in the similar period of 2011.
“In the second quarter the bank’s loan portfolio demonstrated steady growth. We remained more conservative in terms of corporate lending amid uncertain economic conditions, while retail demand demonstrated robust growth supported by active consumer demand. We continued to work on operational efficiency, and already in the first half of the year some results became visible — return of equity increased to 13%, while cost-to-income ratio also improved in comparison to the same period of 2011”, — commented Tatiana Gavrilkina, Deputy Chairwoman of the Management Board.
The bank’s assets rose by 9.7% in comparison with H1 2011 and amounted to Rub 191.5 bln. Loans to corporate clients before provisions grew by 11.6% compared to the same period of 2011 and added up to Rub 123.2 bln as of July 1, 2012. Volume of retail loans totaled Rub 25.0 bln (excluding loans securitized as part of mortgage portfolio in December 2011) as of the end of H1 2012, up 24% YoY. Thus, share of interest-earning assets reached 78%, while liquid instruments were at the comfortable level of 23% of total assets.
Client funds, the key funding source of the bank, added up 12.4% in comparison to the same period of 2011 and totaled Rub 154.4 bln as of July 1, 2012 mainly driven by inflow of retail client funds, comprising 55% of total liabilities.
Capital of the bank as of the end of the reporting period increased 6.6% in comparison with the same period of 2011 mostly driven by earned profit and reached Rub 20.9 bln. Capital adequacy ratio in accordance with the CBR standards stood at 11.4%, exceeding regulatory requirements.
Moreover, in accordance with the CBR requirements the bank charges provisions on possible impairment of assets. Thus, in H1 2012 the bank recorded Rub 1.3 bln in allocations to provisions, while total provisions stood at Rub 15.1 bln.
* with corrections as of August 21, 2012