21 March 2014
Bank Vozrozhdenie has published audited RAS results for 2013.
As of January 01, 2014, the bank’s assets remained unchanged comparing with the prior year level of RUB206.4 bln. Assets dynamics was positive during H1 2013 (+4.4%) but turned negative in H2 2013 due to unfavourable economic development in the country consequently moving the balance sheet size down to the level of 2013 start. Thereat loan portfolio before provisions added 10.4% Y-o-Y totaling RUB173.5 bln on the back of lending to corporate clients expansion to RUB130.4 bln (+4.9% Y-o-Y) and decent jump in retail loan portfolio to RUB43.0 bln (+31.3 Y-o-Y including securitized mortgage loans).
Clients’ funds cooled down slightly over the year to RUB165.5 bln as of January 01, 2014 from RUB169.2 bln as of the beginning of 2013 (-2.1%) mainly due to corporate current accounts balances reduction. Alongside with this, the key funding source, retail clients’ funds, progressed 4.0% on an annualized basis to RUB104.6 bln despite some downward correction experienced in Q4 2013.
The bank’s equity enhanced 8.0% Y-o-Y by retained earnings and reached RUB21.8 bln. Capital adequacy ratio calculated in accordance with the Bank of Russia regulations (N1 ratio) stood at 11.6% as of January 01, 2014 exceeding mandatory norms.
The bank earned RUB1.4 bln of net income in 2013, a decrease by RUB0.7 bln, or 33.0%, versus the prior year period. It was primarily caused by higher level of provision charges necessary to cover growing risks related to loan portfolio amid Russian economy slowdown. During the reporting period the bank charged RUB3.8 bln to provisions for possible losses on assets. Thus total provisions reached RUB19.4 bln as of the end of 2013. Q4 2013 net income comprised RUB653.0 mln adding 85.6% versus the result of the previous quarter.
Net interest income for 2013 improved by 3.4% comparing to the previous year result and totaled RUB9.6 bln. Throughout the year the bank consistently adhered to defensive fee income strategy amid tough competition on fee-generating products market and managed to minimize net fee & commission income decrease to just 2.0%.
Kindly note that the bank’s IFRS Consolidated Financial Statement for the year 2013 will be published on March 26, 2014.