23 January 2014
Bank Vozrozhdenie published preliminary RAS financial results for 2013 (except for the events after the reporting date).
“In 2013 we were dedicated to following key priorities — support of corporate clients’ businesses and providing retail customers with high quality banking services. Loans to individuals continued to be the main driver of the assets growth, with best dynamics in mortgage lending. In 2014 we will adhere to the same strategy. We plan to monitor credit quality closely while remaining conservative in terms of balance sheet expansion and keeping tough credit requirements to our borrowers”, commented Alexander Dolgopolov, Chairman of the Management Board of Bank Vozrozhdenie.
Assets before provisions were up by 1.1% compared to the beginning of 2013 and amounted to RUB 224.4 billion as of January 1, 2014. Throughout the year the bank’s share of liquid assets stood at a quite significant level of 21%. Such approach to balance sheet management proved its soundness in the fourth quarter of the reporting period. At the same time, the share of loans to customers in total assets improved from 71% to 77%. Loan portfolio before provisions increased by 10.3% from the beginning of the year and reached RUB 173.3 billion.
Corporate loans before provisions edged up 4.9% during the year to RUB 130.4 billion as of January 1, 2014. The dynamics of the indicator throughout the year was mixed, while the average portfolio for 2013 made up RUB 129.7 billion versus RUB118.9 billion for 2012 (+9.1%). Some decline in Q4 2013 was attributed to active repayments in the end of the quarter typical for this period of the year. Loans to SMEs continuously comprise more than half of corporate loans.
Retail loans before provisions (including the securitized portfolio) elevated to RUB 42.9 billion, up 30.9% for the year. In December 2013, the bank finalised the first stage of the third securitization deal, transferring mortgage loans for RUB 3.4 billion to SPV Closed Joint Stock Company “Mortgage agent Vozrozhdenie 3”. In total, mortgages increased by 33.6% in 2013 to RUB 29.8 billion, comprising 70% of retail portfolio.
Capital rose by 6% during the year to RUB 21.6 billion supported by net profit retention.
Retail funds grew by 4% in 2013 to RUB 104.6 billion. The upside was driven by RUB 6 billion inflow of individuals’ deposits for the period. Resources of corporate clients on current accounts were stable throughout the first three quarters of the year, which ran counter to the historical trend, and only in the fourth quarter shifted to RUB 31.3 billion. To ensure balanced dynamics of assets and liabilities, the bank stuck to moderate approach in managing the cost of term deposits. As a result, more expensive corporate deposits decreased during the last twelve months of 2013 by 12.9% to RUB 26.2 billion. Total customer funds remained more or less flat at the level of 2012.