OREANDA-NEWS  On 16 December BANK URALSIB (URALSIB or Bank) (RTS: USBN) reports on its 11 months 2008 financial results under Russian Accounting Standards (RAS).

Net income of the Bank reached 2.4 bln rubles during January-November 2008. Pre-tax income amounted to 4.5 bln rubles for 11 months 2008 vs 1.5 bln rubles y-o-y 2007.

During the reporting period the Bank's core banking income was significantly growing. During 11 months period net interest income grew to 19.2 bln rubles, thus increasing by more than 2 times (117.7% growth) vs y-o-y 2007. Net fee and commission income during January-November 2008 exceeded 6.4 bln rubles, indicating 33.6% growth vs y-o-y 2007.

Net income of the Bank reached 432.9 mln rubles, pre-tax income amounted to 462.9 mln rubles in November 2008. The growth of the core banking income and net gains from securities in the amount of 1.2 bln rubles contributed essentially to net income of the Bank in November 2008.

Operating income for 11 months reporting period reached 19.5 bln rubles, indicating 33.9% growth vs y-o-y 2007.

In the reported period the Bank showed significant growth rates of key balance sheet figures. The assets grew by 16.1 % up to 417.7 bln rubles during 11 months reporting period.

The Bank's equity reached 42.8 bln rubles during the same period (by 5.4% up y-t-d).  The CBR registered a subordinated deposit of 6 bln rubles on December 2, 2008, thus BANK URALSIB increased its capital to 48.8 bln rubles (by 20% up y-t-d).

The loan portfolio rose up to 269.1 bln rubles (by 20.4% y-t-d). Meanwhile loans to corporate customers increased up to 184.2 bln rubles (by 14.0% y-t-d), loans to individuals - up to 84.9 bln rubles (37.1% up y-t-d).

Customer accounts (excluding budget funds) also experienced significant growth up to 198.2 bln rubles as of 30.11.2008 (up 2.6% vs 31.12.2007). In particular, amounts due to corporate customers increased to 139.0 bln rubles (12.1% 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 amounted to 59.1 bln rubles as of 30.11.2008, the volume of equity securities in the portfolio decreased by 68.7% in absolute terms during 11 months period; the share of equity securities in the assets structure amounted to 1.0 %.

Operating expenses, including personnel expenses reached 15.0 bln rubles during January-November 2008.  In November 2008 operating expenses reduced by 15.1% to 1.3 bln rubles vs October 2008. Thus Cost-to-Income ratio (C/I) was improved to 62.8% during 11 months period 2008. During the reporting period the core banking income/operating and administrative expenses ratio remained at a pre-crisis high level and amounted to 140.9%.

Stable position of the Bank is confirmed by serious improvement of current liquidity ratios. Current liquidity ratio (H2) as of the end of November amounted to 82.1% (regulatory norm min 15%), instant liquidity ratio (H3) reached 102.89% (regulatory norm min 50%), long-term liquidity ratio (H4) - 84.74 % (regulatory norm max 120%).