OREANDA-NEWS. February 11, 2011. BANK URALSIB (OJSC “URALSIB” or the Bank) (RTS: USBN) reports on preliminary 2010 financial results under Russian Accounting Standards (RAS) before post balance sheet events.

Key achievements

 

Net income of the Bank reached 4.2 bln rubles for the reporting period of 2010 vs 4.3 bln rubles net loss for 2009. Pre-tax income amounted to 5.8 bln rubles before post balance sheet events.

 

During the reporting period the Bank's assets increased by 7.8% to 408.6 bln rubles.

 

Bank increased loan portfolio to 221.2 bln rubles as of 31.12.2010 (growth by 9.6% y-t-d).

 

Customer accounts reached 293.9 bln rubles, indicating 23.8% growth vs y-o-y 2009.

Financial results

Net income of the Bank reached 4.2 bln rubles for the reporting period of 2010 vs 4.3 bln rubles net loss for 2009. Pre-tax income amounted to 5.8 bln rubles vs 4.2 bln rubles pre-tax loss for 2009. Net income of IVQ2010 amounted to 995 mln rubles (growth by 208.4% vs IIIQ2010).

Selected Income Statement items

12M10

IVQ10

12Q09

IVQ09

Change 12M10/12M09

RUB mln

Net interest income

14,709

4,383

14,793

2,893

-0.6%

Net fee and commission income

5,815

1,517

5,638

1,248

3.1%

Net gains from operations with securities

693

(1)

4,723

922

-85.3%

Net gains from operations with with foreign currencies and precious metals

647

1,169

1,003

232

-35.4%

Other non-interest income

496

161

450

153

10.2%

Allowances for loan losses

846

2,109

(13,710)

391

-

Net operating income

23,207

5,967

12,897

5,839

79.9%

Operating expenses

17,395

5,131

17,147

3,531

1.5%

Pre-tax income/loss

5,812

836

(4,245)

2,308

-

Net income/loss

4,213

995

(4,343)

2,435

-

Net income growth was mainly influenced by net operating income increase. Net operating income for 12 months of the reporting period reached 23.2 bln rubles (79.9% growth vs y-o-y 2009).

During the reporting period core banking income reached 20.5 bln rubles. In particular, during 12 months net interest income shrank slightly by 0.6% and amounted to 14.7 bln rubles. Net fee and commission income during 2010 exceeded 5.8 bln rubles, indicating 3.1% growth vs y-o-y 2009.

Net gains from operations with foreign currencies and precious metals reached 648 mln rubles for 12 months of the reporting period.

Positive changes occurred in operating income structure. Core banking income share in operating income structure (excluding allowances) amounted to 91.8% vs 76.8% y-o-y 2009. During the reporting period volatile income share in operating income structure reduced to 6.0% vs 21.5% in 2009.

Income from recovery of allowances amounted to 846 mln rub. Thus the loan loss reserves created due to the crisis developments reached their peak in 2009. At present the Bank is actively collecting the impaired debts improving the prospects for the gradual recovery of reserves.

Operating expenses/net operating income ratio (C/I) amounted to 77.8% (75.3% in IIIQ2010).

 Selected Balance Sheet items

31.12.2010

31.12.2009

Change, 31.12.10/31.12.09

RUB mln

Assets

408,648

379,036

7.8%

Equity

45,389

44,899

1.1%

Loan portfolio (gross)

221,157

201,706

9.6%

Corporate loan portfolio

153,061

131,688

16.2%

Retail loan portfolio

68,096

70,018

-2.7%

Customer accounts

293,937

237,362

23.8%

Corporate customers accounts

176,129

150,244

17.2%

Individual customers accounts

117,807

87,118

35.2%

Securities portfolio

91,235

92,810

-1.7%

In the reported period Bank’s assets grew by 7.8 % up to 408.6 bln rubles mainly due to the loan portfolio growth.

Having overcome the loan portfolio stagnation in IH2010, the Bank continued increasing loans to corporate and retail clients. Totally Bank managed to increase loan portfolio to 221.2 bln rubles as of 31.12.2010 (growth by 9.6% y-t-d). Loans to corporate clients increased to 153.1 bln rubles (by 16.2%), loans to individuals shrank slightly to 68.1 bln rubles (by 2.7%). The share of NPLs in loan portfolio reduced to 9.7% as of 31.12.2010 vs 11.1% as of 31.12.2009.

During the reporting period customer accounts indicated 23.8% growth up to 293.9 bln rubles as of 31.12.2010. In particular, individual accounts increased by 35.2% to 117.8 bln rubles, corporate accounts grew by 17.2% to 176.1 bln rubles.

Loan portfolio/ customer accounts ratio decreased to 75.2% as of 31.12.2010 vs 85.0% as of 31.12.2009.

At the turn of 2010 Bank raised one-year syndicated term loan with the total amount of USD US 275 mln and margin 2.5% over LIBOR. It is the first major post-crisis international transaction for URALSIB, completed on favorable market conditions with the participation of a large group of banks.

Total regulatory capital under CBR methodology amounted to 54.1 bln rubles as of 01.01.2011. The capital adequacy ratio (N1) exceeded the minimum required level and reached 13.8% as of 01.01.2011.