Vozrozhdenie Bank earned Rub0.5 billion for 6M2016 under RAS

9 August 2016

The bank’s assets stayed at the level of the year-start and equaled to Rub 217.6 billion as of July 1, 2016. The assets’ structure remained almost unchanged during the quarter: cash and equivalents share totalled 13%, changes in the share of net loans and securities portfolio were within 1 p.p. (73% and 8.1% of the assets respectively as of the quarter-end).

The loan portfolio before provisions 1mounted to Rub 184.2 billion as of the reporting date that was a notch less than in Q1, 2016 (-1.2%). The retail loans including the securitised mortgages delivered another quarter of sustainable growth of 3.3% QoQ to Rub 57.0 billion. After the implementation of the new risk-metrics the corporate loan book went down by Rub 3.1% over the past 3 months to Rub 127.2 billion.

The bank’s efforts aimed at the funding base widening brought its fruits in the form of 5.7% QoQ increase of the clients’ funds on deposit and demand accounts to Rub 188.6 billion. The rise of retail customers’ and individual entrepreneurs’ resources contributed a lot to that growth. The inflow of term deposits and the increase of the balances on demand accounts totalled together Rub 9.6 billion (+7.5% QoQ) that pushed their total volume to Rub 137.6 billion. Corporate clients’ funds also added 1.2% over the 3 months and came up to Rub 50.1 billion.

As of July 1, 2016 the common equity Tier I capital adequacy ratio (N1.1 norm) was 8.1% (7.9% as of April 1, 2016) with the minimum acceptable level set at 4.5%, while the total regulatory capital adequacy ratio (N1.0 norm) totalled 12.5% (12.2% as of April 1, 2016) with the minimum acceptable level set at 8.0%. The total capital as per Basel III standards rose by 3.2% to Rub 27.1 billion on the back of retained earnings.

Operating income before provisions for 6M 2016 advanced by 13% comparing to the result of 6M 2015 and reached Rub 9.0 billion. Net interest income (+11.5% to Rub 5.5 billion) and other income including income from securities were the main drivers of the growth. Net fees&commissions remained almost at the level of the previous year (Rub 2 billion). Meanwhile, the initiatives on the improvement of the fee-generating product line allowed the bank to catch a momentum in terms of the quarterly dynamics (+9.0% QoQ and +2.0% versus Q2 2015).

The bank earned Rub 457.5 million of net profit for H1 2016 comparing to the net loss of Rub 640.0 million for the similar period of 2015.

1 Hereinafter the loan portfolio numbers are stated according to the Explanatory Information to the Interim Accounting (Financial) Statements and the management reporting

Vozrozhdenie Bank is among TOP-10 banks on issue of state-supported mortgages: the issued amount rose by 179% YoY
Vozrozhdenie Bank will publish its H1 2016 IFRS results and hold a conference call for investors on August 24