OREANDA-NEWS. November 02, 2010. Bank Vozrozhdenie reported 9M 2010 results under Russian Accounting Standards. Bank’s total assets under RAS amounted to RUB 155.7 bln as of October 1, 2010, up 15% YoY (RUB 135.1 bln as of October 1, 2009). Net profit for 9M 2010 amounted to RUB 404.7 mln, up 46.2% for the quarter. Operating income before provisions for 9M 2010 reached RUB 7.2 bln, including RUB 3 bln of net non-interest income that grew 17% compared with the same prior-year period, reported the press-centre of Bank Vozrozhdenie.

“Despite the difficult operating environment in the third quarter we increased our earnings 1.6 times compared with the previous quarter. This is primarily resulting from asset quality stabilization and lower charges to provisions. Moreover we have focused on costs optimization and managed to maintain our operating expenses at the level below planned despite the surpassed asset growth”, — commented Dmitry Orlov, Chairman of the Management Board.

“Due to seasonal factors loan portfolio growth totaled 2% q-o-q. In the current market environment of lending rates downward trend and gradual liberalization of requirements to the borrowers lending growth has started to revive. The bank plans to expand lending both in corporate and retail segments maintaining the adequate level of provisioning”, — added Dmitry Orlov.

Over 2010 the bank grew loan portfolio to the clients and primarily to SMEs which share accounted for about 60% in total loan portfolio before provisions. Loans and advances to customers before provisions grew 11% Ytd to RUB 103.7 bln including corporate loan portfolio 11.2% Ytd increase to RUB 88.5 bln and retail loan portfolio growth of 8% Ytd to RUB 15.2 bln.

Asset quality improvement led to 22% decrease of charges to provisions q-o-q, which amounted to RUB 545 mln in Q3 2010.

Customer accounts grew significantly by 31% since October 1, 2009. Funds of individuals increased by 36% y-o-y and amounted to RUB 78.2 bln, remaining the main funding source for the bank with a 56% share in total liabilities.

Bank Vozrozhdenie serves 1,500,000 mln individuals and more than 56,000 legal entities. Distribution network accounts for 172 offices and 716 ATMs in 20 regions of Russia.