Bank Vozrozhdenie net profit for H1 2010 amounted to RUB 276.8 mln

28 July 2010

Bank Vozrozhdenie reported H1 2010 results. Bank’s total assets under RAS amounted to RUB 147 bln as of July 1, 2010, up 7% YoY (RUB 137.3 bln as of July 1, 2009). Net profit before tax amounted to RUB 276.8 mln.

“Downward trend of the CBR refinancing rate put pressure on the yields loan portfolio that resulted in contraction of the Bank’s net interest income by 28.4% YoY. Net interest income decrease was the main reason for net profit contraction. Nevertheless the level of received profit complies with the Bank’s business plan for 2010. We still expect to have RUB 500 mln of net profit at the yearend” — commented Dmitry Orlov, Chairman of the Bank’s Management Board.

“Starting from the beginning of the year we observe deceleration of loan portfolio impairment. Thus, during last 6 months we charged to provision RUB 1.3 bln while loan portfolio grew by RUB 6.8 bln. In the same period of the previous year charges to provisions amounted to RUB 2.5 bln while volume of loan portfolio remained flat”, — added Dmitry Orlov

Since the beginning of the year the Bank enhanced lending primarily to its core clients — SMEs and employees of the Bank’s corporate clients. Corporate loan portfolio grew by 8.5% in H1 2010 and reached RUB 86.4 bln. The share of corporate loans comprised 83% of the total loan portfolio. Retail loan portfolio remained flat and amounted to RUB 14.4 bln as of July 1, 2010.

Customer accounts grew by strong 21.7% YoY. Retail deposits increased by 34.4% during 12M and reached RUB 75 bln and accounted for 57% of the Bank’s total liabilities as of July 1, 2010.

Bank’s shareholder equity totaled to RUB 19.6 bln as of July 1, 2010. Capital adequacy ratio was 17,5%.

The Bank serves more than 1,500,000 individuals and 55,000 corporate clients. Distribution network of 167 offices and over 700 ATMs covers 20 regions of Russia.

Relevant links

Moody’s Rating Agency affirmed Bank Vozrozhdenie credit rating
Bank Vozrozhdenie will announce its H1 2010 IFRS results