IFRS Financial Results of Vozrozhdenie Bank for 6M 2018

29 August 2018

Vozrozhdenie Bank reported on IFRS financial results for 6M 2018.

“The financial reporting figures demonstrate the stable growth of the Bank’s key business indicators. The appearance of high-tech products and new services in the Bank’s product line, the launch of upgraded versions of remote servicing systems, plus good rating outlooks are conducive to the further growth of key indicators,” commented Deputy Chairman of the Management Board Vyacheslav Tomashevskiy.

As of June 30, 2018, the Bank’s assets amounted to RUB 236 bn, a 2% increase compared to Q1 2018. The net loan portfolio as at the reporting date reached RUB 164 bn, showing the growth of 3.2% during Q2 2018: the volume of loans to corporate customers increased by 2.7% to RUB 116 bn, and the retail loan portfolio hiked 5% and reached RUB 68 bn. The mortgage portfolio, which increased by 3.7% to RUB 49.1 bn and the consumer loan portfolio, which grew by 10% to RUB 17.6 bn have traditionally become the main growth drivers of the retail portfolio.

The share of liquid assets as at the reporting date is at a level comfortable to the Bank and totals 21%.

Corporate customer funds as of June 30, 2018 amounted to RUB 39 bn, an 8% increase in Q2 2018. At the same time, retail funds increased by 2.8% to RUB 158 bn. The share of retail customer funds in total volume of raised funds over six months has shown little change and totaled 80%.

The loan-to-deposit ratio remained at the level of Q1 2018 and amounted to 94%.

Regardless of the market trends towards the reduction of rates, the Bank earned net interest income of RUB 5.5 bn in the reporting period (-1% against H1 2017 figure) and insignificantly reduced the net interest margin for H1 2018 to 4.6% (-0.1 pp against H1 2017 result).

In Q2 2018, net fee and commission income increased by 14.5% compared to Q1 2018 and amounted to RUB 1.1 bn due to an increase in commissions on settlement transactions, bank card settlements and guarantee transactions.

The operating profit of the Bank before provisions and profit tax amounted to RUB 7.7 bn in H1 2018.

Operating expenses are under control and amounted to RUB 4 bn over six months, the cost-to-income ratio was 51%.

The Bank earned RUB 2 bn in H1 2018. Taking into account the one-off increased contribution to the Deposit Insurance Agency in the amount of RUB 1.2 bn, net profit amounted to RUB 762 mln.

The Bank’s equity estimated as per Basel III amounted to RUB 29.8 bn as at the reporting date. The common equity Tier 1 adequacy ratio and total capital adequacy ratio as at the reporting date were 11.0% and 14.6%, respectively.

The N1.0 and N1.2 ratios estimated as per the requirements of the Bank of Russia as at the reporting date amounted to 12.7% and 9.0%, respectively, exceeding the established statutory ratios.

Vozrozhdenie Bank earned RUB 640 million of net profit under IFRS in 3M 2018
Moody’s Upgrades Vozrozhdenie Bank’s Rating to Вa2, Outlook Positive