OREANDA-NEWS. May 04, 2012. Russian Agricultural Bank (RusAg) has announced its audited consolidated financial results for the year 2011 according to International Financial Reporting Standards (IFRS) and Russian Accounting Standards (RAS), reported the press-centre of RusAg.

In 2011, loan portfolio of RusAg increased by RUB 234 billion or 31% and reached RUB 980 billion as of January 1, 2012. The volume of corporate loans grew by RUB 172 billion or 26% and amounted to RUB 832 billion in 2011, retail loan portfolio rose by RUB 62 billion or 73% up to RUB 147 billion. Total assets of the Bank under IFRS increased by RUB 354 billion — 38% in the reporting period and reached RUB 1 284 trillion as of January 1, 2012. The volume of customer accounts grew by RUB 221 billion or 57% in 2011 under IFRS and amounted to RUB 607 billion, including corporate deposits growth by RUB 197 billion — 76% up to RUB 456 billion and retail deposits increase by RUB 24 billion — 18% and totaled RUB 151 billion. The Bank’s equity increased by RUB 39 billion or 33% and amounted to RUB 157 billion as of January 1, 2012 under IFRS.

In 2011, the growth in lending contributed to the increase of revenues from the Bank`s core business. Net interest income grew 3.9% reaching RUB 54 billion and net fee and commission income made up 49% totaling RUB 4.2 billion, as compared to 2010.

Profit of Russian Agricultural Bank for the year 2011 amounted to RUB 58 million under IFRS and RUB 1.3 billion under RAS. IFRS statements include data calculated in accordance with provisioning requirements based on evaluation of future cash flows from lending that reflects the specific character of the Bank’s activity more precisely. In 2011, considering the impact of the drought of 2009-2010, the Bank made provisions for loan impairment of RUB 22.6 billion under IFRS, yet securing a positive financial result.

To provide a correct reflection of some of its activity facts in the balance sheet, based on their economic sense within the reporting period, RusAg made an adjustment of 2009 financial figures under Russian Accounting Standards with regard to provisions for loan impairment in the amount of RUB 17.7 billion. The adjustment applied to the loans extended to those agribusiness producers affected by the drought in 2009.

Provisions made for restructured loans without estimation of collateral value according to the existing requirements will be recovered upon positive cash flow from the borrowers. Taking into account payback periods the Bank expects major provisions recovery by the end of 2014.

The volume of loans extended by RusAg in the framework of the State Program on Agribusiness Development increased by RUB 80 billion, or 24% against 2010, and reached RUB 409 billion. The major part of lending was extended to seasonal field works and amounted to RUB 150 billion, which is RUB 30 billion over the 2010 figures). The 2011 crop made up about 93 million tons, while the Bank has provided two-thirds of the total volume of lending to seasonal works in Russia.

Significant financial resources invested to the development of the national agribusiness and the effective financial support of the industry by Russian Agricultural Bank contributes to the dynamic growth of this important sector of economy.