OREANDA-NEWS  On 20 November was announced, that BANK URALSIB (URALSIB or Bank) (RTS: USBN) reported on its 10 months 2008 financial results under Russian Accounting Standards (RAS). In view of the current juncture at the financial market the Bank has arrived at a decision on increasing the disclosure frequency of the financial information under RAS.

Net income of the Bank reached 1.989 bln rubles during January-October 2008 vs net loss of 0.351 bln rubles y-o-y 2007. Pre-tax income amounted to 4.046 bln rubles for 10 months 2008 vs 2.744 bln y-o-y 2007.

During the reporting period the Bank's core banking income was swiftly growing. During 10 month period net interest income grew to 17.386 bln rubles, thus increasing by more than 2.1 times (110.8% growth) vs y-o-y 2007. Net fee and commission income during January-October 2008 exceeded 5.880 bln rubles, indicating 34.4% growth vs y-o-y 2007.

Operating income for 10 months reporting period reached 17.789 bln rubles, indicating 23.1% growth vs y-o-y 2007.

In the reported period the Bank showed high growth rates of key balance sheet figures, mostly exceeding the average market levels. The assets grew by 15.5 % up to 415.7 bln rubles as of 31.10.2008. The loan portfolio rose up to 280.7 bln rubles (by 25.6% y-t-d). Meanwhile loans to corporate customers increased up to 195.7 bln rubles (by 21.1% y-t-d), loans to individuals - up to 85.0 bln rubles (37.2% up y-t-d).

Customer accounts also experienced growth up to 203.7 bln rubles as of 31.10.2008 (up 5.4% vs 31.12.2007). In particular, amounts due to corporate customers increased to 143.5 bln rubles (15.7% up y-t-d).

Under current conditions at the financial markets the Bank's dependence on the volatile financial instruments remains at a reasonably low level. The securities portfolio volume reduced by 10.7 % to 52.4 bln rubles as of 31.10.2008 y-t-d, the volume of equity securities in the portfolio decreased by 68.2% in absolute terms during the same period; the share of equity securities in the assets structure shrank to 1.0 %.

The key task of the last reporting period for the management was the increase of core banking income and expenses control. During 10 months 2008 the core banking income/operating and administrative expenses ratio remained at a pre-crisis level and amounted to 149.3%. Stringent staff costs and other administrative expenses control during January-October helped to retain Cost-to-Income ratio (C/I) almost at a pre-crisis level (66.9%).

Stable position of the Bank is confirmed by serious improvement of current liquidity ratios. Current liquidity ratio (H2) as of the end of October amounted to 77.2% (regulatory norm min 15%), instant liquidity ratio (H3) reached 103.35% (regulatory norm min 50%), long-term liquidity ratio (H4) - 86.67 % (regulatory norm max 120 %).