OREANDA-NEWS. April 25, 2011. At the end of 1Q2011 B&N Bank’s pre-tax profit (Russian Accounting Standards) amounted to RUB 323 mln. compared to loss totaling RUB 184 mln. for the same period a year earlier. Financial result of 1Q2011 strengthens the positive trend which began at 2010 midyear. As a result, B&N Bank gains profit throughout three quarters in a row, reported the press-centre of B&N Bank.

Profitability growth was driven by such crucial factors as reduction of liabilities cost and steady positive dynamics of fee and commission income. Furthermore, successful implementation of collecting measures has positive effect on reduction of expenses related to loan loss provisioning. At the same time, provisioning level remains more than sufficient and covers overdue loans at 120%.

In 1Q2011 total loan portfolio of B&N Bank grew by RUB 2.2 bln. (+ 4%) following the Bank’s adopted strategy for gradual expansion of the loan book in 2011.

Total retail liabilities increased by 7% and amounted to RUB 60.3 bln. Corporate liabilities demonstrated planned decrease due to repayment of term deposits which were traditionally placed at year-end on the short-term basis. At the same time, on-demand balances on corporate accounts continued their growth dynamics due to stable inflow of new customers.

The Bank’s equity totaled about RUB 10.1 bln.