OREANDA-NEWS. July 23, 2010. Sviaz-Bank has totaled up the key results of its business development efforts over six months of 2010. According to the management balance sheet, the Bank’s net assets had grown to 214.9billion rubles by July 1, 2010. The high efficiency of the transactions conducted contributed to the formation of the Bank’s stable revenue base. The Bank’s net interest income worked out to 2.1 billion rubles over the six-month period, with net operating income of 4.2 billion rubles, and net profit of 2 billion rubles, reported the press-centre of Sviaz-Bank.

The high financial performance results have helped the Bank to build up its capital base. On July1, 2010, the Bank had 25.4 billion rubles in equity (capital), at an equity (capital) adequacy rate of 22.27% (against 10% as the minimum required by the Bank of Russia).

The Bank’s assets have been growing chiefly by more funds being given in loans to the Bank’s corporate customers. Over six months of 2010, Sviaz-Bank built up the loan portfolio of its corporate customers by 68% (or by 20.5 billion rubles) to 50.5 billion rubles. The Bank’s new borrowers-turned-customers over the six months of the year were Akron OJSC, Volgomost OJSC, SZT OJSC, Chimprom OJSC, PO Kristall OJSC, SibirEnergo OJSC, TGK-14 OJSC, and Sakhatransneftegaz OJSC. Cooperation has taken off with the Russian Utility Systems OJSC and continued with MRSK Center and Volga OJSC, Dalsviaz OJSC, SUEK OJSC, Sibirtelecom OJSC, Irkutskenergo OJSC, Irkutsk Power Network Company OJSC, MRSK Northwest OJSC, NESK OJSC, VolgaTelecom OJSC, MRSK Volga OJSC, Baikalwestcom CJSC, Yeniseitelecom CJSC, Volga TGK OJSC, Lenenergo OJSC, NSK-Power Networks OJSC, MRSK Center OJSC, SUENKO OJSC, EnergoKurgan OJSC, and DRSK OJSC.

Lending to budgets at various levels has gathered momentum. The Bank has provided funds to the Town Hall of Novosibirsk, Yaroslavl Region’s Finance Department, and the municipal administrations of Omsk, Ufa, and Kaliningrad. It also kept on funding the Finance Ministry of Nizhniy Novgorod, Omsk Region, the Republic of Karelia, and the municipal administrations of Samara and Krasnoyarsk. The Bank has allocated over 1.7 billion rubles within the framework of its programs to make loans to small and medium-size businesses. Transactions with individual entrepreneurs have grown 3.5-fold to 458 million rubles.

New customers signed up by the Bank have pushed up growth in the balances of its corporate customers’ accounts to 59.9 billion rubles, which is 27.4%, or 12.9 billion rubles, more than they were at the start of the year.

The portfolio of loans made to individuals has grown by 16.6% since January 1, to 3.3 billion rubles, in consequence of the new lending programs rolled out by the Bank. Attractive terms of mortgage loans made to purchase real estate on the secondary housing market and programs launched to give loans to borrowers purchasing newly built housing projects have helped the Bank expand its mortgage loan portfolio by 83%, to 601.8 million rubles, over six months of the year. The launch of nonpurpose lending programs has led to a significant increase in the portfolio of nonpurpose loans to individual customers by 80%, to 751.1 million rubles.

The deposits accepted by the Bank from individuals have grown by 45%, to 9.2 billion rubles, since the year beginning. Over this time, Sviaz-Bank has issued more than 580,000 plastics cards, with balances in the plastics accounts having grown by 13.6%.

Within the framework of the Bank’s strategy to expand its regional network (now comprising 49 branches and 169 banking offices on Russia’s territory), the Bank’s Board of Directors has resolved to open a branch in Kazan, Tatarstan.