Vozrozhdenie Bank earned Rub 1.7 billion for 6M 2017 under RAS

11 August 2017

Vozrozhdenie Bank published its financial results for 6M 2017 under RAS.

Net profit for the reporting period amounted to Rub 1.7 billion, compared to Rub 0.5 billion for the six months of the last year.

Operating income before provisions for H1 2017 amounted to Rub 8.6 billion, a decrease of 5% compared to the result of the last year. Excluding the effect of a one-off income from the sale of VISA shares in H1 2016 in the amount of Rub 0.75 billion, the growth in operating income before provisions was 4% YoY. In its structure, net interest income saw positive dynamics (Rub 6 billion, + 8% compared to the previous year), and non-interest income excluding the sale of VISA shares decreased by 5% to Rub 2.6 billion on the back of declined income from trading securities, while net commissions increased 8% over the same period and reached Rub 2.2 billion.

The bank’s assets amounted to Rub 239 billion as of July 1, 2017, 2% up compared to the year-start. These dynamics were caused by an expansion of net loans; their share accounted for 79% of total assets as at the reporting date (+2 p.p. YtD).

The loan portfolio before provisions1 amounted to Rub 212 billion as of the reporting date, 5% higher than at the beginning of the year. Lending to legal entities grew by 8% and became the driver here. Retail loans including the securitised mortgages increased by 6% YtD to Rub 68.0 billion.

Amid active work at the funding base widening, the clients’ funds on deposit and demand accounts continued its rise — by 1.5% YtD to Rub 207 billion. Both corporate and retail clients’ funds saw positive dynamics and rose by 1.5% to Rub 62 billion and Rub 145 billion, respectively. Thus L/D ratio remains at a comfort level of 103%.

As of July 1, 2017 the common equity Tier I capital adequacy ratio (N1.1 norm) was 8.1% (7.7% as of April 1, 2017) with the minimum acceptable level set at 4.5%, while the total regulatory capital adequacy ratio (N1.0 norm) totalled 12.1% (12.2% as of April 1, 2017) with the minimum acceptable level set at 8.0%. The total capital as per Basel III standards rose by 0.5% to Rub 30.5 billion on the back of retained earnings.

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

RAEX has assigned ruA- rating to Vozrozhdenie Bank
S&P Global Ratings keep Vozrozhdenie Bank’s ratings at “ВВ- / B”