Vozrozhdenie Bank has published audited RAS results for 2015

21 March 2016

Vozrozhdenie Bank has published audited RAS results for 2015.

Gross loans increased 1.7% to RUB 183.3 billion as of December 31, 2015 compared to the end of 2014. Marginal contraction of the corporate loan portfolio to RUB 126.9 billion (-1.4% for the year) amid uncertain macroeconomic environment was offset by growth of retail loans, including securitised mortgages, to RUB 53.1 billion (+13.9% for the year). Net loan indebtedness accounted for 70.5% in the assets’ structure, 1.6 pps higher than a year ago.

As of January 1, 2015, the bank’s assets totaled RUB 217.6 billion, 3.7% down from the prior-year period due to decline in excessive liquidity that the bank has accumulated as of the end of 2014. Cash and equivalents dropped 2.4% YoY to RUB 32.0 billion and securities portfolio (excluding junior tranches accounted within the frame of mortgage securitization) was 21.4% down YoY to RUB 18.1 billion.

Customer funds amounted to RUB 172.9 billion, down 2.7% compared to the level of 2014 year-end. Retail deposits — key funding source for the bank — surged by 3.4% for the year to RUB 107.9 billion owing to inflow of new funds and foreign currency repricing. It partially mitigated contraction of corporate client funds by 14.1% to RUB 46.4 billion.

Total regulatory capital adequacy ratio (N1.0 norm) improved to 13.0% as of December 31, 2015 (12.0% as of December 31, 2014), while the minimum acceptable level is set at 10%. Replenishing Tier II capital with RUB 6.6 billion which were raised under the re-capitalisation programme of the State Deposit Insurance Agency, supported 6.8% YoY growth of total equity to RUB 28.0 billion. Common equity Tier 1 capital adequacy (N1.1 norm) was down to 8.3% (9.3% as of December 31, 2014), while the minimum acceptable level is set at 5%. As per Basel III standards, Common equity Tier 1 decreased 12.1% YoY to RUB 17.7 billion as of December 31, 2015 mainly due to incurred losses.

Operating income before provisions increased 6.7% over the year and reached RUB 16.4 billion for 2015 due to 6.2% growth of net interest income to RUB 10.8 billion that offset contraction of net fee income by 3.4% to RUB 4.2 billion. The operating income composition remained almost unchanged: the share of net interest income stood at 66.0%, the share of non-interest income — 34.0%.

High level of charges to provisions remaining throughout the reporting period led to RUB 4.7 billion of net loss versus RUB 2.1 billion of net profit earned in 2014.

Following review of sovereign ratings, Moody’s Investors Service placed ratings of 37 banks, including Vozrozhdenie Bank, under review
Vozrozhdenie Bank will publish its FY 2015 IFRS results and hold a conference call for investors on April 6