OREANDA-NEWS. February 03, 2011. As of the end of 2010 B&N Bank’s pre-tax profit before events occurring after the reporting date (Russian Accounting Standards) amounted to RUB 257 mln. compared to loss totaling RUB 1 552 mln. a year earlier. It should be mentioned that the second half of 2010 was a crucial time for the Bank since in this period the Bank generated pre-tax profit amounting to RUB 808 mln., reported the press-centre of B&N Bank.

Earnings growth was driven by decrease in cost of liabilities, growth of fee and commission income and successful implementation of restructuring/collecting measures on a number of problem loans. The latter notably influenced the declining trend in non-performing loans. In 4Q2010 share of NPLs 90+ (calculation refers to all overdue payments plus the principal amount of the loan) decreased from 8.4 % to 6.8% (9.6% as at the beginning of 2010).

In 2010 the Bank’s aggregate loan portfolio grew by 30% and amounted to RUB 54.3 bln. that significantly exceeds the average growth of loans in Russian banking sector. Total retail liabilities increased by 28% and amounted to RUB 56.6 bln. as of January 1, 2011. At the same time, corporate liabilities progressed up to RUB 29.8 bln. (+ 81%). Such significant growth of corporate liabilities enabled the Bank to diversify fundamentally its funding base. Throughout the year the Bank’s equity increased by 19% and totaled RUB 10.3 bln.

Prudential ratios, regulated by the Bank of Russia, were fully satisfied. Capital adequacy ratio (N1) as at January 1, 2011 stood at 12.44%. Liquidity ratios still remain high: N2 “instant liquidity” – 143.75% at min. 15%; N3 “current liquidity” – 140.65% at min. 50%; N4 “long-term liquidity” – 87.38% at max. 120%.

As of January 1, 2011 the Bank’s branch network accounted for 123 offices: 30 branches, 1 rep office, 2 regional operating offices, 21 subbranches in Moscow and Moscow region, 63 regional subbranches, 6 cash offices (5 in Moscow and 1 in Kaliningrad). In 4Q2010 the Bank opened a new branch in Irkutsk, 1 cash office “Holiday-Suschevskaya” and 1 subbranch “Tulsky” in Moscow.