Sviaz-Bank Earned 756 million Rubles in Net Profit over 9M 2013
OREANDA-NEWS. Sviaz-Bank (Vnesheconombank Group) has tallied its business performance over nine months of 2013. According to its management accounting figures as of October 1, 2013, the Bank's net profit had grown to 756 million rubles since year beginning, its net interest income reached 5.9 billion rubles, and its net commission earnings grown to 991 million rubles.
The Bank's assets had risen to 294 billion rubles, with 41.7 billion rubles in the Bank's equity capital, or 3billion rubles more than it was over nine months of 2012. The equity capital adequacy ratio was 14.14% on the reporting date, significantly above the 10% minimum required by the Bank of Russia. Lending to individual and corporate borrowers was the principal driving force behind the growth in assets.
The portfolio of loans issued to individuals since January 1, 2013 had increased by over 13 billion rubles to 43 billion rubles. Mortgages, primarily mortgages issued to servicemen, are the best-selling products today, and Sviaz-Bank is now listed among the five biggest mortgage banks in Russia.
Sviaz-Bank's portfolio of loans issued to corporate customers and one-man businesses stood at 121.3 billion rubles on the reporting date. The loan portfolio had had many new additions, such as the INTECO Group, Svyaznoy Logistika CJSC, and the GAZ Group. No major changes have occurred in the structure of the Bank's corporate loan portfolio through 2013 - Sviaz-Bank still gives its lending preferences to transportation and communications businesses, and borrowers in the power and manufacturing industries. The corporate customers' accounts showed a total balance of 156.2 billion rubles, 13% or 18.2 billion rubles more than it was on January 1, 2013.
In 2013, Sviaz-Bank has still been among leading participants of the market for bond issue organizers and a major investor in ruble-denominated bonds floated by corporate issuers. Acting as an issue organizer, Sviaz-Bank has placed 13 bond issues at a total par value of 46 billion since early 2013. Its total organizer quota has reached over 18 billion rubles. Since the year beginning, the Bank had carried through several large projects to place bonds for issuers in many industries. In early February, Sviaz-Bank acted as an organizer of two bond issues at a par value of 20 billion rubles for RusHydro OJSC. In mid-July, Sviaz-Bank acted as one of the organizers to place two bond issue of the NPK Uralvagonzavod OJSC at a total par value of 6 billion rubles. The deal was among the few debt placements for Russian diversified engineering holding companies.
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