Bank Vozrozhdenie net profit for Q1 2011 grew by 44% YoY to Rub 286.5 million

27 April 2011

Bank Vozrozhdenie reported 1Q 2011 results under Russian Accounting Standards. Bank’s total assets under RAS grew by more than 5% or Rub 8.0 billion YtD and amounted to RUB 174.8 bln as of April 1, 2011. Net profit for 3M 2011 amounted to RUB 286.5 mln, that is 44% higher than in the Q1 2010.

“Profit growth was supported by lending expansion. Despite traditional business slowdown in the first months of the year, we managed to increase total loan book mainly due to lending to corporate clients”, — kommented Dmitry Orlov, Chairman of the Management Board.

Corporate loan portfolio before provisions grew by 32.4% YoY to Rub 106 billion (10.1% YtD), while retail loan book increased by 28% YoY (5.1% YtD) to Rub 17.5 billion.

Customer accounts grew by 15% YoY to Rub 139.2 billion. Retail deposits of Rub 82.9 billion remained the core funding source for the bank comprising 52% of total liabilities.

Net interest income demonstrated positive dynamics in Q1 2011, up 10.8% YoY, and amounted to Rub 1.5 billion, while net commission income reached Rub 1.0 billion, up 19.8% YoY.

During the quarter the bank continued adequate provisioning in accordance with CBR requirements: charges to provisions in Q1 accounted for Rub 494 mln, implying 9,5% provisions to loans ratio as of the end of the quarter.

Bank Vozrozhdenie serves 1.5 million individuals and more than 60,000 of corporate clients. Distribution network accounts for 173 offices and 730 ATMs in 21 regions of Russia.

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Bank Vozrozhdenie was awarded by “Finance.” magazine
Bank Vozrozhdenie will publish its Q1 2011 IFRS report on May 19