OREANDA-NEWS.  July 27, 2012. According to the interim RAS balance sheet (disclosure form), PSB posted a net profit of RUB4.6 billion in 1H 2012, a more than 3-fold increase from the RUB1.5 billion achieved in 1H 2011. The increase was driven mainly by a strong interest income growth resulting from a positive trend toward a sustained loan portfolio expansion, reported the press-centre of PSB.

PSB assets grew 9% in 1H 2012 and 27% year-on-year, to RUB610 billion. The total loan portfolio (net of provisions and interbank loans) was up 31% year-on-year. PSB net debt (including provisions and excluding interbank loans) rose 12% in 1H 2012 and 37% year-on-year. Both retail and corporate loan portfolios increased significantly, with retail expanding by 15% in 1H 2012 and by 34% year-on-year, and corporate by 10% and 31%, respectively. A strong growth in retail lending volume was driven by active development of consumer and mortgage lending programs, as well as an increase in sales.

PSB has maintained a stable share of funding from customers in its liability mix (approximately 77%). The share of retail deposits in total funding from customers in 1H 2012 was 30%. Retail deposits grew 6% in 2Q2012 and 31% year-on-year. Indeed, PSB continues to consider retail deposits as a key source of funding and has been consistently increasing their share in its deposit portfolio, by offering its customers a broader product range and further developing online services.

PSB capital ("own funds" according to the RAS definition) as at 1 June 2012 amounted to RUB65.2 billion. H1 capital adequacy ratio was 10.5%.

PSB CFO Vladislav Khokhlov comments on the published results: "PSB management has a positive view of the Bank's 1H 2012 financial results. We have seen a balanced development trend, with symmetric growth in loan portfolio and funding from customers. PSB delivered a strong increase in both profits in absolute terms and ROE. Indeed, we have managed to achieve our strategic objectives for the period despite the turbulence in the financial markets".

Note: PSB balance sheet data in accordance with RAS reflects PSB 1H 2012 results to a significant extent. A more detailed discussion of PSB results, including from the P&L prospective will be held during an investor and analyst conference call at the end of August 2012, following the announcement of the 1H 2012 IFRS results.