OREANDA-NEWS. On 03 February 2009 was announced, that net profit attributable to Gazprombank Group’s shareholders according to IFRS for the six months of 2008 increased by 3.4 times compared to the same period of the previous year and reached RUR 27,388 million (first half of 2007 – RUR 8,033 million). Assets of the Group grew by 17% to RUR 1,105.7 billion, equity – by 10% up to RUR 222.6 billion.

Revenues growth in all business segments of the Group

During the first half of 2008 core banking income from lending and fee-based transactions of the Group increased by 25% to RUR 16.6 billion compared to RUR 13.3 billion in the first half of 2007.

Trading income (revenues from securities and foreign currency transactions) grew by 2.7 times for the six months of 2008 and reached RUR 11.0 billion compared to RUR 4.1 billion for the same period of 2007. At the same time, the development of the global financial crisis since August 2008 resulted in significant decrease of the Russian securities market as well as devaluation of the Russian Ruble. Thus, in the second half of 2008 Gazprombank expects a decline in the results from its trading operations compared to the first half of 2008.

Net profit from non-banking business segments of the Group including petrochemicals, media and heavy machinery segments increased by 74% to RUR 30.0 billion (before minority interest) compared to RUR 14.9 billion in the comparable period of 2007.

A moderate growth of salaries and other administrative expenses by 7% from the same period of the previous year (RUR 12.2 billion in the first half of 2008 against RUR 11.4 billion for the first six months in 2007) is mostly attributed to the development of the Group’s banking business, including the expansion of Gazprombank’s regional network, including Moscow offices.

Growth of the Group’s banking assets

Banking business still comprised the majority (82%) of the Group’s assets by the end of the first half of 2008 with the share of petrochemicals segment at 13% and media segment –4%.

The Group’s assets mainly grew in the banking segment, which increased by 15% since the end of 2007. The increase of the banking assets to RUR 903 billion was driven by the growth of the loan portfolio by 11% during the first half of 2008. Loans to corporate customers increased from RUR 343 billion as at the end of 2007 to RUR 375.7 billion at mid-2008, retail loans grew by 21% from RUR 72 billion to RUR 87 billion.

Stable funding base

Customers’ deposits represent the major share in the Group’s funding (44%), international borrowings in the form of Eurobonds and syndicated loans make around 9% of total funding, borrowings in the domestic market – 7%, Group’s equity – 17%.

Compared to the end of 2007, Gazprombank Group customers’ funds grew by 26% up to RUR 504.6 billion (end of 2007 – RUR 405.1 billion). Funds of corporate customers increased by 30% reaching RUR 385.3 billion, retail deposits grew by 12% to RUR 119.3 billion by the end of the first half of 2008.

At mid-2008 the Group’s equity reached RUR 222.6 billion (including the minority interest of shareholders of petrochemicals and media segments of RUR 30.2 billion). At  the end of 2007 the Group’s equity was RUR 201.6 billion. As of 30 June 2008 capital adequacy ratio of Gazprombank Group calculated according to the Basel Committee guidelines was 22.6%.

Business profitability ratios

Gazprombank Group ROAA and ROAE for the first half of 2008 reached 5.1% and 26.8%, respectively. ROAA and ROAE for the banking segment of the Group for the first half of 2008 were 2.4% and 17.5%.