24 October 2012
Bank Vozrozhdenie published 9M 2012 results under Russian Accounting Standards. Net profit for 9M 2012 increased 1.6 times to Rub 1.898 billion compared to Rub 1.209 billion in the corresponding period of the previous year.
Operating profit before provisions for 9M 2012 totaled Rub 4.5 billion, up 15.8% from the similar period of 2011 mostly on the back of interest income growth and steadily positive dynamics of fee and commission income. Return on equity added up to 13.3% for the reporting period compared to 9.4% for 9M 2011.
“In the 3rd quarter, the bank kept optimizing its balance sheet structure, so the share of interest-earning assets reached 80%. We have also strengthened the capital base with the first tranche of subordination in the amount of Rub 1 billion.
Retail segment is actively developing outpacing average sector growth rate in loan portfolio, while, on the corporate side, we saw a decline of business activity amid the whole economy slow down. However, positive dynamics of interest income in the face of soaring loan rates supports operating profit growth”, — commented Alexander Dolgopolov, Chairman of the Management Board.
The bank’s assets grew by 8.8% compared to 9M 2011 and reached Rub 192.7 billion. Despite moderation in corporate demand and repayments from a number of our borrowers in the 3rd quarter, volume of corporate loan portfolio before provisions grew by 6.3% in comparison to the same period of 2011 and stood at Rub 119.3 billion, as of October 1, 2012.
As of the end of Q3 2012, volume of retail loans grew by 25.1% compared to 9M 2011 and exceeded Rub 28.1 billion (excluding mortgage loans securitized in December 2011) amid continued boom of mortgage lending.
As of October 1, 2012, client funds came to Rub 154.4 billion — up 10% from the corresponding period of 2011. This dynamics is mainly due to growth of retail deposits which remain the key funding source for the bank. The volume of individuals’ funds stood at Rub 94.3 billion while its share in total liabilities exceeded 55%.
As of October 1, 2012, equity of the bank gained 10.3% to the result of the same period of 2011 and reached Rub 22.3 billion on the back of earned profit and subordination of Rub 1 billion raised in Q3 2012. Capital adequacy ratio amounted to 11.6% exceeding regulatory requirements.
The bank charges provisions on possible impairment of assets, in accordance with the CBR requirements. Total provisions fund accumulated for 9M 2012 rose by Rub 1.77 billion to Rub 15.6 billion.