30 July 2009
Bank Vozrozhdenie reported its H1 2009 results. During Q2 2009 total assets under RAS practically has not changed and amounted to RUB137.3 bn. up by 3.7% compared to the same period of the last year (RUB132.4 bn. as at July 01, 2008). After tax profit for H1 2009 totaled RUB 937.6 bn.
“Despite challenging macroeconomic situation the bank managed to earn RUB214.6 mln. of the net profit in Q2 2009. The key factors causing the lower net profit versus the beginning of the year were net interest income contraction due to the loan book decrease within the quarter, growth of charges to provisions and peculiarities of deposits insurance and tax payments accounting methods. During the reported quarter charges to provisions amounted to RUB 1.2 bn. compared to RUB 0.7 bn. for the same period of the previous year. The total amount charged to provisions in H1 2009 was equal to RUB 2.4 bn. The bank continuously follows conservative strategy in respect of the credit quality in order to retain business volumes and protect equity”, — commented Tatiana Gavrilkina, Deputy Chairwoman of the Management Board.
After deposits outflow experienced by the banking system at the year end the bank managed to recover client’s confidence and, first of all, ensure the inflow of retail funds. As at July 01, 2009 customer accounts (both companies and individuals) totaled RUB 98.5 bn., whereas individual deposits grew to RUB 55.8 bn., up by RUB 2.8 bn. compared to the same date of the previous year.
During Q2 2009 the bank stuck to the policy of ensuring appropriate credit quality level without enhancing the portfolio volume. As at July 01, 2009 total loans to customers reached RUB 97.4 bn. having decreased by 2% during the reported period. Corporate loans amounted to RUB 80.5 bn. versus RUB 16.9 bn. of the retail loan book.
In accordance with the methodology of the Bank of Russia as at July 01, 2009 the bank’s equity amounted to RUB 19.6 bn. exceeding the one at the beginning of the year by 3.7%. The capital adequacy ratio grew by 2.75% over the first half of the year and at the end of the period was equal to 18.45%.
Net interest income rose by 10.6% compared to the first half of the previous year result and amounted to RUB 4.1 bn. as at July 01, 2009. Net fee income for 6M of the current year contracted by 6% to RUB 1.8 bn. due to the lower volume of customers operations caused by the overall economic slowdown. Serious work on increasing the bank’s efficiency resulted in operating expenses contraction by 2.4% compared to the same period of the previous year and amounted to RUB 2.76 bn. versus 2.83 as of July 01, 2008 (the amount restated as per the change of accounting rules).