OREANDA-NEWS. October 22, 2010. Raiffeisen Bank Aval disclosed its 3Q2010 financials on Oct 21, posting a UAH 1mn loss in 3Q2010.

The bank’s net interest income slumped 2.9% qoq to UAH 1,050mn while its net fees & commissions soared 33.0% to UAH 308mn. On the other hand, the operating expenses climbed 2% and reached UAH 712mn. The bank also slightly increased its provision expenses to UAH 713mn, up 2% qoq and incurred income tax expense worth UAH 34mn.

Total assets displayed a positive dynamics, adding  3.6% to reach UAH 55,932mn. Reduction in gross loans (-2.9%) was offset by higher cash & cash equivalents (+13.1%) and purchases of investment securities (+31.3%). The bank also surprisingly succeeded in pooling deposits that reached UAH 28,484mn, up 5.8% from the previous quarter.

Millennium Capital regards 3Q2010 financial results as neutral for BAVL. The contraction of the loan book (-2.9%) was expected (-3.0%) since the bank still abstains from active lending. However, the increase in deposits came as a surprise for us given Aval offers the lowest deposit rates on the market which is a good news for the institution. At the same time, core revenue fell short of our expectations (UAH 1,358mn vs UAH 1,499mn) on lower asset yield and subdued commission income while interest and commission expenses were in line. Overall Millennium Capital considers the results as broadly neutral for the bank.