OREANDA-NEWS. October 29, 2012. Vnesheconombank publishes consolidated financial statements under IFRS for six months of 2012.

1. Dynamics of main components of assets and liabilities

(analysis on the basis of comparing balance indicators as of 30.06.2012 and 31.12.2011)

As of the end of the first six months of 2012, assets amounted to 2 667 billion rubles. Assets increased by 135 billion rubles (+5%) from the start 2012.

The growth in assets was for the most part brought about by the increased portfolio of loans extended to customers, it increased by 110.2 billion rubles (+9%) to 1 339.1 rubles. The proportion of credits to customers in the assets of Vnesheconombank Group for the first six months remained almost unchanged (50% as of 30.06.2012 and 49% as of 31.12.2012).

In the first six months, the amount of investment financial assets available for sale increased from 454.3 billion rubles to 504.7 billion rubles (+11%). The growth was brought about by purchasing entitlements to shares of GPB (OJSC) with the Bank’s commitment to sell the shares to the issuer under the terms of the sold American eight-year call option (the sum of 47.95 is reflected as other financial assets available for sale). Under the terms of the call option agreement Vnesheconombank is to receive a premium on a six-month basis which is recognized in a consolidated profit-and-loss statement as part of interest income from other investment financial assets available for sale.

The amount of funds in credit institutions decreased by 42.8 billion rubles to 414 billion rubles. This was largely caused by the early repayment of some subordinated loans by GPB (OJSC) (the par value is 50 billion rubles). The loans were extended by Vnesheconombank under Law 173-FZ.

The following changes occurred in the resource base. The amount of liabilities for the first six months increased by 123 billion rubles (+6%) to 2 122 billion rubles. The main reasons were the following: the increased amount of issued debt securities (by 79.8 billion rubles (+31%) to 340.9 billion rubles), the increased amount of debt to the Russian Government and the Bank of Russia (by 75.9 billion rubles (+9%) to 960.5 billon rubles). The debt to the Bank of Russia increased by 44.9 billion rubles. This growth was caused by the fact that subsidiary banks of Vnesheconombank Group increased the amount of short-term funds they raised. The increased debt to the Russia Government amounted to 31.0 billion rubles and was caused by the growth in short-term deposits raised by Vnesheconombank Group’s subsidiary banks.

At the same time, the amount of customers’ funds decreased by 30.1 billion rubles (-9%) and was 323.3 billion rubles, the main reason for it was that the volume of time deposits in subsidiary banks of Vnesheconombank Group dwindled.

Vnesheconombank Group’s capital increased by 12.0 billion rubles among other things through generating profit in the amount of 21.6 rubles and decreasing unrealized revaluation of investment securities  available for sale by 10.7 billion rubles.

2. Dynamics of main profit components

(analysis on the basis of comparing data for the first six months of 2012 and the first six months of 2011, balance indicators were compared on the basis of mean chronological values for respective periods).

In the first six months profit amounted to 21.6 billion rubles. As compared with the same period last year, profit decreased by 8%.

Net interest income was 38.7 billion rubles (+7.7 billion rubles from the same period last year).

Interest incomes increased by 22.9 billion rubles from the first six months of 2011 to 98.0 billion rubles. The main reason was the increased returns on credits and financial leasing associated with increased volumes of the said transactions.

Interest expenses increased by 15.2 billion rubles to 59.4 billion rubles, with interest expenses on funds raised from credit institutions and the Bank of Russia increased by 6.5 billion rubles due to the growth in average amounts of more expensive long-term borrowings and new borrowing rates, expenses on the funds of customers and the Russian Government as well as expenses on the issued securities (4.4 and 4.3 billion rubles respectively).

In the accounting period net incomes from transactions on financial instruments revaluated on a fair value basis through profit or loss amounted to 4.1 billion rubles (in the first six months of 2011 - a negative value of (-) 2.5 billion rubles).

Net incomes from transactions on investment financial assets available for sale decreased from 15.2 billion rubles in the first six months of 2011 to 0.3 billion rubles in the first six months of 2012.

Incomes minus expenses on transactions in foreign currency increased by 3.6 billion rubles to 5.3 billion rubles.

Non-interest expenses in the accounting period increased by 5.0 billion rubles to 20.6 billion rubles. The growth by 3.3 billion rubles in other operating expenses had a significant influence.

The amount of expenses on forming reserves remained almost unchanged from the same period of 2011 and was 10.8 billion rubles.