OREANDA-NEWS. April 21, 2011. On Apr 18, Raiffeisen Bank Aval, the second largest non-state bank covering 5.8% of total sector assets, released audited IFRS financial result for FY10. The total revenue was at UAH 5,239mn (vs UAS figure of UAH 5,616mn). Pre-provision profit came in at UAH 2,290mn (vs UAH 2,776mn UAS) and less provision charge (UAH 2,099mn vs UAH 2,840mn UAS) resulted in UAH 84mn net profit (UAH 1mn UAS). NPLs (30+ measure) comprised 36.7% of gross loans compared to 30.3% in FY09.

Millennium Capital: the news is NEUTRAL for the stock. While parsing through the numbers our focus was on NPL dynamics which appeared favorable. The NPLs added up only UAH 1bn vs FY09 figure (~ UAH 15bn) signaling the overall stabilization in the quality of the loan book. The NPL ratio went up ~650bps to 36.7%, though, mostly due to a significant contraction in gross loans over the period. Overall, the read is neutral.