OREANDA-NEWS. September 05, 2012. Sviaz-Bank has published its intermediate condensed consolidated financial statements prepared for six months of 2012 under International Accounting Standards (IAS) and including an auditor’s opinion based on the results of the examination conducted by the Ernst & Young LLC auditing company, reported the press-centre of Sviaz-Bank. 

As of June 30, 2012, the Bank had 246.5 billion rubles in net assets, an increase of 11.9% over six months of 2012. Growth in the net assets was sustained, for the most part, by more lending: the Bank’s loan portfolio increased by 16.0% over six months of 2012 to 146.2 billion rubles on June 30. Lending to the Bank’s individual customers was going up at the highest rates of all: the amount of loans made to individuals over six months rose by 32.7% to 19.7 billion rubles. The portfolio of commercial loans issued this period of the year climbed up by 12.8% to 133.2billion rubles on the reporting date.

The quality of the Bank’s financial assets improved over six months of 2012, and, according to the audit results, the reserve ratio of its financial assets fell to 2.9% from 3.4%.

In 2012, the Bank continued to build up its resource base, strengthen and expand its relations with its key customers, and involve new customers in cooperation with it. Growing confidence in the Bank is confirmed by the 9.3% growth in the total funds it had accepted from lending institutions and individual and corporate customers to 174.5 billion rubles. Balances in the accounts of individuals and corporate customers rose by 40.2% and 13.1%, respectively, in the calendar year from June 30, 2011 to June 30, 2012.

The Bank’s expanding business led to growth in profits it earned from transactions. Over six months, the Bank’s operating income rose by 30.7% to 4,051 million rubles against the same period of 2011. The biggest share (3,657 million rubles) of its operating income was contributed by its net interest margin that had risen by 33.4%. The Bank earned another 394 million rubles by providing services to its customers on commission, 10.1% more than it took in over the same period of 2011. As a result, the Bank made a net profit of 334 million rubles in six months of 2012, or 85.6% more than it did in the same period of 2011.

As of June 30, 2012, the Bank had 43.0 billion rubles in IAS capital. Its capital adequacy of 21.4% computed in accordance with the requirements of the Basel Agreement is at a comfortable level, clear evidence that the Bank has enough capital to keep up business expansion and withstand possible external upheavals.