OREANDA-NEWS. July 01, 2011. Sviaz-Bank has made public its interim brief consolidated financial statements prepared for the first quarter of 2011 in accordance with the International Accounting Standards (IAS) and a report on the results of the general audits conducted by Ernst & Young LLC, reported the press-centre of Sviaz-Bank.

According to the financial statements published, the Bank made a profit of 604 million rubles in the first quarter of 2011. The bulk of the Bank’s earnings came from lending transactions (with the net interest income amounting to 1.359 billion rubles, 16.8% more than the Bank took in profits in the first quarter of 2010), transactions with securities (465 million rubles), and commission on services provided to customers (182 million rubles).

The Bank earned high interest revenues from its broadening customer base. Its loan portfolio increased 14% in the first quarter of 2011, reaching 86 billion rubles on March 31, 2011. Balances in its customers’ accounts went up by over 12% from what they were in 2010, and the Bank registered 110.5 billion rubles in its customers’ deposits on the reporting date.

On March 31, 2011, the Bank’s assets were of just the same high quality as they had been previously, with its general reserve requirements maintained at 4.6%. Its portfolio of loans showing signs of individual devaluation was 5.2% of its total portfolio. Credit risk (ratio of available reserves to the loan portfolio) was at a comfortable 6.8%.

Profit earnings added strength to the Bank’s capital base. Measured in IAS, the Bank’s capital stood at 42.8 billion rubles on March 31, 2011. The 37.8% capital adequacy calculated in accordance with the requirements of the Basel Agreement will help the Bank to maintain high growth rates in the future as well.