OREANDA-NEWS. On January 28, 2007 Bank Vozrozhdenie summed up interim financial results for 2007 under Russian Accounting Standards. For the year 2007 estimated net profit of Bank Vozrozhdenie under RAS was 2,0 billion rubles ($81,5 million), exceeding the profit for the previous year by 800 million rubles or 64,3%, reported the press-centre of Bank Vozrozhdenie.

As at 01.01.2008 the Bank’s assets totaled 114,3 billion rubles ($4,7 billion) and increased by 52,2% compared to the end of 2006. The average ROE reached 19,8% versus 19,2% in 2006. The Bank’s equity, calculated according to the Bank of Russia methodology, totaled 14,5 billion rubles ($ 591 million) more than double the end of 2006 figure.

The total amount of attracted clients’ funds, including due to banks and issued securities, grew by 47% during the last 12 months and as at 01.01.2008 was 97,7 billion rubles ($4.0 billion).

The Bank’s total loan portfolio at 01.01.2008 was 81,3 billion rubles ($3,3 billion), an increase of 46,5% compared to the end of 2006.

The small and medium enterprises sector is the key client segment for Bank Vozrozhdenie. During the last 12 months the Bank’s portfolio of loans to corporate clients grew by 41,5% and reached 64,6 billion rubles due to high demand for classical credit products as well as for factoring and leasing services. In addition new standard products and procedures for the benefit of SME’s and micro-businesses are being developed for 2008.

The retail loan portfolio of Bank Vozrozhdenie almost doubled during the year and at January 1, 2008 amounted to almost 14 billion rubles. Mortgages and consumer loans, including credit cards, remained the most popular products for individuals in 2007. Over 12,3 thousand families improved their living conditions with the help of the bank. The credit card loan portfolio more than doubled during the last year to 2,7 billion rubles ($110 million).

Bank Vozrozhdenie has been a principal member of both Visa and MasterCard international payment systems since 1998. In November 2007, the Bank has issued its one-millionth bank card. All of the Bank’s cards are smart cards. This advanced infrastructure helps the Bank to provide payroll services to five thousand of our corporate customers. Bank Vozrozhdenie provides 1.8 thousand companies with POS-services.

“Business results achieved by the Bank confirm the success of our long-term strategy and the professionalism of our management. A prudent approach to business development, close relations and true partnership with our clients provide a solid base of funding and both interest and non-interest income. This contributed to the Bank’s good financial performance in the uncertain world market conditions during the second half of the year,” commented Dmitri Orlov, President of the Bank.

In 2007 the bank successfully placed its 20-th share issue resulted in an increase of share capital of 4,6 billion rubles ($177 million at the then current exchange rate). The total number of common and preferred shares issued grew to 25 million. In 2007 the Bank also entered the domestic debt capital markets with its first 3-year bond issue of 3 billion rubles. During the last year the Bank’s market capitalization increased by 42,4% to $1,66 billion.

Implementation of a centralized marketing and corporate communications strategy helped also to achieve such a good results. During 2007 the Bank continued to develop its brand, through customers’ needs studies, client’s segmentation, and new products development to ensure a personal approach to all clients.