NOMOS Announces Financial Results for 3Q
OREANDA-NEWS. December 11, 2012. NOMOS announces its Unaudited Condensed Interim Consolidated Statements in accordance with International Financial Reporting Standards (IFRS) as at 30 September 2012 and for the nine months ended 30 September 2012, reported the press-centre of NOMOS-BANK.
The Board of Directors of Nomos Bank ("NOMOS" or "the Bank" or with its subsidiaries, the "Group") on 05 December 2012 approved the Condensed Interim Consolidated Financial Statements in accordance with IFRS for the nine months ended 30 September, 2012. During the nine months period of 2012 NOMOS achieved strong results in line with guidance.
PROFITABILITY: Sound results achieved by core business segments
During the nine months of 2012, NOMOS reported net income of RUB 10.9bn which corresponds to an annualised ROAE of 18.5%. The return on average assets (RoAA) was also healthy at 2.1%. Net profit attributable to NOMOS shareholders increased by 60.7% year-on-year to RUB 9.3bn. These strong results were supported by healthy loan portfolio growth in all core business segments, the successful development of the cross-selling strategy and share of wallet increase.
Total operating income during 9 months 2012 was up33.6% year-on-year to RUB 28.5bn. Net interest income, net fees and commissions remain the key income drivers of NOMOS’ revenue generation. They comprised 73.3% and 18.3% of NOMOS’ revenue respectively.
Net interest income increased by 13.7% year-on-year to RUB 22.9bn. Net interest margin slightly declined to 5.0% due to the pressure of higher funding costs.
Net fees and commissions increased 34.8% year-on-year to RUB 5.7bn. This growth came primarily from settlements (RUB 2.3bn) and documentary operations (RUB 1.6bn) in the corporate and retail segments. The notable growth in net fees and commissions earned by the Group throughout 2012 is the result of the continuing successful development of cross-selling between segments and an increase in share of wallet strategy implementation.
During the 9 months of 2012 trading gains stood at RUB 1.3bn with RUB 1bn coming from operations with securities (compared to a negative result of -RUB 2.3bn in the 9 months of 2011). In Q3 2012 FX losses of (-RUB 0.7bn) affected the bottom line. These were related to the negative revaluation of derivatives transactions, which the Group made during Q3 2012 for the purpose of balancing an open FX position. The negative result has since been recovered as of the end October 2012. Trading result on transactions with foreign currency in October 2012 amounted to RUB 0.7bn.
Operating costs increased by 18.8% year-on-year to RUB 14.8bn (mainly payroll expenses) in line with our growth strategy. The cost to income ratio (the ratio of operating expenses to operating income before provision for impairment) was 47.4%.
Risk cost was stable at 0.8% at 30 September 2012 (0.9% as at FY11) as well as the loan portfolio quality. The loan loss provision expense was RUB 2.9bn with no significant movement year on year.
NOMOS’ net profit attributable to shareholders was RUB 9.3bn for the 9 months of 2012. Earnings per share for the period was RUB 101.12. Earnings per Global Depositary Receipt (GDR) was USD 1.64 based on the exchange rate as of 30 September 2012 of 30.92 RUB/USD.
SUCCESSFUL BUSINESS GROWTH: Notable increase in Loan portfolio, outperforming the market average
As at 30 September 2012 NOMOS’ total assets were RUB 771.7bn compared to RUB 662.1bn at FY 2011. Net customer loans amounted to RUB 549.0bn representing 71.1% of total assets.
Net loan portfolio increased 22.6% notably outperforming the market average (+15.7%) with impressive results generated by all core business segments. Retail loans grew by 40.2% as at September 30, 2012 to RUB 81.5bn, outperforming the market average of 29.4%. Small business loans grew 36.2% as at September 30, 2012 to RUB 40.8bn. Corporate loans grew by 18.2% as at September 30, 2012 to RUB 379.2bn.
The quality of the loan portfolio remained stable. The ratio of loan loss provisions to gross loans stood at 3.7% as at September 30, 2012. The share of non-performing loans (NPLs: loans overdue more than 90 days) stood at 2.2% (2.0% at FY11). The NPLs coverage ratio remained stable at 167.8% reflecting NOMOS’ continued conservative approach to risk management.
The Group Funding structure remains well—diversified. Customer deposits increased by 8.1% during the 9 months of 2012 and accounted for 60.4% of total liabilities (RUB 413.4bn). This growth comes primarily from corporate and retail deposits, which increased by 6.8% and 9.9% respectively. The other sources of funding remained stable: Interbank borrowings stood at 22.0% (RUB 150.5bn), bonds and PNs issued were 9.2% (RUB 63.3bn), and subordinated debt amounted to RUB 43.1bn or 6.3% of total liabilities. As at September 30, 2012 the Group’s Net loan to deposit ratio amounted to 128.3% (slightly down from 130.6% by the end of 6 months of 2012).
NOMOS’ capitalization remains solid with Tier 1 capital ratio at 11.1% as at September 30, 2012 (2011: 12.0%). NOMOS’ total equity was RUB 87.0bn, including RUB 15.2bn of non-controlling interest. The total capital adequacy ratio was 16.2% as at September 30, 2012.
The consolidated financial statements for the nine months ended 30 September 2012 are available for viewing at www.nomos-bank.com.
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