OREANDA-NEWS. May 17, 2013. Income Statement Highlights for 4M 2013 (as compared to 4M 2012):

Net interest income grew 15.9% y-o-y

Net fee and commission income grew 8.0% y-o-y

Operating income before total provisions increased by 18.4% y-o-y

Total provision charge was RUB37.4 bn vs. RUB6.7 bn for 4M 2012

Operating expenses were up by 19.7% y-o-y

C/I ratio grew from 37.5% to 37.9%

Profit before tax amounted to RUB156.4 bn vs. RUB158.1 bn for 4M 2012

Net profit totaled RUB128.9 bn vs. RUB127.3 bn for 4M 2012

Net interest income came at RUB226.0 bn, up by 15.9% for 4M 2012.

Interest income increased by RUB82.9 bn on the back of assets growth;

Interest expenses increased by RUB52.0  bn, owing to increased fund-raising and higher interest rates compared to those in 4M 2012.

Net fee and commission income grew by 8.0% to RUB65.6 bn. Non-credit commission growth was 17.6%. Plastic cards and acquiring services remained the largest contributor to the growth: over RUB23 bn for 4M 2013, up by 52.6% for the same period last year.

Operating income before total provisions increased by 18.4% y-o-y or by RUB48.5 bn and exceeded the operating expense growth (RUB19.5 bn). C/I ratio accounts for 37.9% vs. 37.5% the same period last year. The main drivers for operating expenses growth remained the same and mainly were caused by business development and realization of strategic IT projects. The staff costs increase was due to the growing number of employees in business units. Apart from that part of the employees’ payments was paid in April whereas last year it was paid in May. 

Total provision charge for 4M 2013 amounted to RUB37.4 bn vs. RUB6.7 bn for the same period a year ago. The increase in spending occurred in provisions for loan impairment and other assets was driven by guarantees issuance and an increase of unused credit lines mainly caused by credit cards portfolio growth.   

Profit before tax totaled RUB156.4 bn and net profit amounted to RUB128.9 bn for 4M 2013.

Assets expanded by RUB396 bn in April, or by 2.9% mainly due to the credit portfolio growth.

The Bank lent about RUB530 bn to corporate clients in April that exceeded average monthly level of the first quarter this year. Corporate loan portfolio increased by 1.5% for the month or by RUB109 bn.

Retail customers were granted about RUB190 bn in April. This is one of the best monthly results that was achieved also through special promo consumer and mortgage campaigns. Retail loan portfolio added RUB74 bn or 2.8% in April.

Quality of the loan portfolio remained stable in April, with overdue loans almost unchanged and accounted for 2.82% of the total loan portfolio. Coverage ratio remained strong with loan-loss provisions at RUB618 bn, or 2.2 times the overdue loans, as of May 1, 2013.

Investment portfolio grew by RUB48 bn or by 2.9% mainly due to investment in OFZ bonds.

Retail deposits continued to grow and increased by 3.3% m-o-m in April or by RUB224 bn due to inflows to deposits and saving certificates. Retail deposits and accounts grew by RUB351 bn YTD that is 2.3 times bigger than for 4M 2012.

Corporate deposits and accounts increased by 5.1% in April or RUB145 bn from inflow of funds to term deposits. The funds were accumulated on term deposits in anticipation of May holidays.

Regulatory capital (under CBR regulation No. 215-P) increased by RUB14.8 bn in April to RUB1,788 bn, due to net profit earned for the month. At the same time, however, capital was reduced by planned investments in its subsidiaries and revaluation of previous investments in foreign currencies.

Capital adequacy ratio of the Bank (under RAS) increased to 13.3% in April. The increase was related to the capital growth.