Vozrozhdenie Bank has announced RAS results for 3M 2016

18 May 2016

Vozrozhdenie Bank has published its RAS results for 3M 2016.

The bank’s assets were RUB 216.1 billion as of the end of the reporting period, remaining nearly at the year-start level. Within their structure, net loan indebtedness added 3.3 pps to account for 73.8% of the total assets on the back of the effective use of the free liquidity that V.Bank accumulated in late 2015. Cash and equivalents decreased by 13.6% in Q1 2016 and amounted to RUB 27.6 billion as of the reporting date, while securities portfolio slumped by 24.0% to RUB 16.1 billion.

The bank’s loan portfolio before provisions stood at RUB 186.5 billion, 3.6% up YtD, triggered by growing volumes of corporate and retail lending. Corporate loan book improved by 3.5% to RUB 131.3 billion, and retail book including securitised mortgages gained 3.8% to RUB 55.2 billion during the same period.

Customer current accounts and deposits totalled RUB 178.4 billion, 3.2% higher than they were at the end of 2015. The growth was mainly supported by corporate clients’ funds which rose by 12.3% over the quarter to RUB 50.4 billion, while retail and individual entrepreneurs’ ones stayed almost at the year-start level and came in at RUB 128.0 billion, as the inflow of new deposits was offset by FX revaluation.

As of April 1, 2016, the common equity Tier1 capital adequacy ratio (N1.1 norm) was 7.9% versus 8.3% at January 1, 2016 with the minimum acceptable level set at 4.5%, while the total regulatory capital adequacy ratio (N1.0 norm) moderated to 12.2% from 13.0% at the year-start with the minimum acceptable level set at 8.0%. Some decrease in the ratios was related to expansion of the risk-weighted assets, which added 3.0% YtD to RUB 222.3 billion, and contraction of the total capital as per Basel III standards, that diminished by 3.2% to RUB 27.1 billion due to losses incurred.

The bank’s operating income before provisions for Q1 2016 advanced by 8.3% YoY and reached RUB 4.3 billion primarily as a result of net interest income widening that led its share in the operating income 4.3 pps up YoY to account for 65.6% of the total indicator.

Operating expenses for the reporting quarter totalled RUB 6.9 billion versus RUB 2.7 billion in the same previous-year period. Their sharp rise reflects RUB 2.6 billion of negative result from the deals on assignment of rights, which were offset by a recovery of possible loan loss provisions, as well as RUB 1.8 billion of negative revaluation of the non-core assets included into OPEX under the RAS, which was further mitigated by a recovery of provisions on other assets.

As a result, net loss for Q1 2016 amounted to RUB 712.1 million versus RUB 22.7 million of net profit for Q1 2015.

2.5% of Vozrozhdenie Bank voting shares were bought out within MTO
Vozrozhdenie Bank will publish its 3M 2016 IFRS results and hold a conference call for investors on May 26