OREANDA-NEWS. Vozrozhdenie, Russia’s 22 largest bank by assets, released 9M07 IFRS. Net profit was $48.7 mln. Total revenues were reported at $253 mln. The bank’s net interest income grew to $156 mln, implying a high 6.1% net interest margin. Total revenues grew 25% q-o-q to $253 mln, bringing the bank’s ROE to 19.7%, which  is strong, given the increase in the bank’s equity capital. Vozrozhdenie has been able to hold onto its main advantage: strong fees and commissions, which contributed 33% of the bank’s revenues.

The bank’s assets grew 12% q-o-q to $4,017 mln, remaining 76% funded by customer accounts, including 45% from retail deposits. The bank is therefore not significantly affected by the current market turmoil, Alfa-Bank's analysts infer. "The key positive is that the bank managed to keep costs from rising along with revenue growth. Its cost-to-income ratio thus declined from 65.3% in 1H07 to 62.7% in 9M07. We therefore reiterate our positive view of the bank and our buy recommendation with a 12-month target price of $71 per share," the experts conclude.