24 October 2013
Q3 2013 net income totaled RUB352 million growing 86% versus the previous quarter.
Bank Vozrozhdenie has summarized RAS results for 9M 2013. Q3 2013 net income totaled RUB352 million growing 86% versus the previous quarter. Financial result for 9M reached RUB736 million, a decrease by 61.2% comparing to the similar period of the previous year due to higher level of provisions for possible loan losses. Operating income before provisions added 7.7% QoQ to RUB4.0 billion contributed by positive dynamic of both net interest income and net fees and commissions.
“Economy slowdown and related toughening of lending conditions lead to deceleration of corporate loan book growth. Still healthy people’s interest in buying apartments with mortgages as well as relatively low level of debt burden among our retail customers continues to boost the bank’s portfolio of loans to individuals,” commented Andrey Shalimov, Deputy Chairman of the Management Board. “SME dominance within our clients’ base and increase of retail lending proportion in the total book enhance nonstop growth of the bank’s interest income,” added Mr. Shalimov.
Assets grew by 3.5% to RUB 214.4 billion since the beginning of the year with the net loan book share in the balance increasing from 65.0% as of January 1, 2013 to 68.9%.
Corporate loan portfolio added 6.3% to RUB132.1 billion during the current year while its growth rate for Q3 equaled to 1.9%. Retail loans including securitized ones jumped over the quarter by 10.3% to RUB 40.4 billion advancing by 23.3% since the year start. Significant portion of mortgages within the retail loan book (68%) as well as conservative approach to development of consumer lending, that is focused on existing customer base, resulted in shrinking of retail NPL ratio to 2.2%. Over the current year total provisions for possible losses on assets expanded by RUB3.9 billion to RUB20.1 billion as of the end of Q3 2013. Substantial rise of charges to provisions for possible losses versus 9M 2012 was caused by necessity to move the coverage ratio for a couple of earlier impaired exposures up.
Bank Vozrozhdenie funds its assets increase primarily by customer accounts that totaled RUB175 billion as of October 1, 2013 comprising 91% of total liabilities. It includes most actively growing individuals’ savings and transaction accounts that added up 6.3% YTD to RUB107 billion. During the last three months the inflow of retail deposits slowed down to 1.1% over the quarter on the back of interest rates downward correction implemented both by the bank and in the system overall. As a result the bank’s loan-to-deposit ratio improved to 98.5%.
The bank’s capital rose by 3.5% to RUB 20.9 billion since January 1, 2013 due to retained profit of the current year.
Please keep in mind that the bank’s IFRS consolidated financial statement for 9M 2013 will be published on November 26, 2013.