24 July 2013
Bank Vozrozhdenie summarized H1 2013 results under the Russian accounting standards. Net profit for 6 months totaled RUB 384 mln. Aggregate amount of net interest income and net fee & commission income reached RUB 7.1 bln, up 1.3% compared with the result for the first half of 2012. Operating profit before provisions grew by 4.6% to Rub 3.3 bln comparing to the same period of the previous year.
“Current trends in the Russian economy put significant pressure on NIM and cause decline of non-interest income throughout the whole banking sector. However, the bank succeeded in generating healthy operating income,” Tatiana Gavrilkina, Deputy Chairwoman of the Management Board commented. “Meanwhile we have to stress that the level of provisioning will be a crucial factor influencing the bottom line in the nearest future,” she added.
Since the beginning of the year the bank’s assets rose by 3.1% reaching RUB 213.5 billion as of the reporting date (+11.5% versus July 01, 2012). Retail loan portfolio increase by 18.2% YTD to RUB 30.2 billion was the main driving force behind that growth. If add up securitized mortgages, the total retail book would equal to RUB 36.6 billion exceeding the start of the year level by 11.8%. Corporate loans progressed 4.3% from RUB 124.3 billion to RUB 129.7 billion during the first six months of the year.
Customers’ funds increased by 3.4% since January 1, 2013 totaling RUB 175 billion (13.3% growth comparing to the same date of 2012) primarily due to the strong inflow of individuals deposits, the main funding source for the bank. As of July 01, 2013 resources of retail clients contributed 54.8% to the total volume of the bank’s liabilities.
The bank’s capital stood at RUB 24.4 bln as of the reporting date, up by 5.3% since the beginning of the year. Compared to the same period of 2012, the indicator grew by 16.9% on the back of retained earnings and subordinated debt raising in the amount of RUB 3 bln. Capital adequacy as of July 1, 2013 totaled 12.0% exceeding regulatory norms.
In accordance with its conservative risk management policy and the Bank of Russia requirements as well as responding to the challenges of the current macro environment the bank continues to add up provisions for possible loan losses. Total volume of provisions for possible losses on assets increased by RUB 2.5 bln (+15.3%) during the first half of 2013 and amounted to RUB 18.7 bln as of the end of the period.
Please notice that Bank Vozrozhdenie consolidated financial statements for 6M 2013 prepared in accordance with IFRS will be published on August 27, 2013.