OREANDA-NEWS. November 26, 2008. VAB Bank ended 9 months 2008 with profit of USD 3.1 million compared to USD 0.1 million for the respective period of 2007, reported the press-centre of VAB Bank.

Total assets of the Bank remained almost at the level of YE2007 and comprised USD 1,221 million as of 30 September 2008 on the background of the gross loan portfolio growth by 13.3%. The gross loan portfolio grew to USD 1,032 million which is slightly above the level of 1H2008.

Retail loan book still grew faster than the corporate one, the former growing by 31% to USD 322 million over the first 9 months 2008. Subsequently, the share of retail loans in the gross loan portfolio increased to 31% from 27% at YE2007.

“Under current environment our strategy lies not in the rapid expansion and growth. Now, it is all about liquidity preservation, limiting of lending and maintaining profitable operations”, commented Peter Baron, VAB Bank CEO.

Although, compared to YE2007, customer deposits showed a slight decrease of 2.2% reaching USD 721 million, the quality of the deposit base composition and its maturity structure have improved. The share of term deposits has increased to 77% from 73% as of YE2007. Representing the more diversified source of funding, retail deposits have grown to USD 415 million or 58% of the customer deposit portfolio from 51% at YE2007.

The Bank maintains a strong total capital adequacy ratio of 18.4% as of 30 September 2008. Total capital reached USD 191 million showing a growth of 34.5% compared to YE2007. Tier 1 Capital Adequacy amounted to 16.5%.