OREANDA-NEWS.  January 30, 2014. According to the preliminary balance sheet under the Russian Accounting Standards (RAS) net profit of PSB for 2013 (excluding events after the balance sheet date) amounted to RUB7.8 billion, compared with RUB8.7 billion for the last year.

Operating income (profit before impairment charge, operating expenses and tax expenses) grew by 5% to RUB47.3 billion, and operating expenses decreased by 5% to RUB32.3 billion. The key driver for the profit decrease in 2013 was the additional impairment charge in the amount of RUB4.6 billion compared with RUB0.6 billion impairment recovery in 2012. The substantial additional impairment charge was due to weakening of the loan portfolio quality on the background the economic slowdown in Russia.

As at January 1, 2014, PSB assets totalled RUB738 billion, up 8% from January 1, 2013. The liquidity ratios remained at a sufficient level. So, as at January 1, 2014, CBR N2 and N3 liquidity ratios were 40% and 74%, exceeding the minimum requirements of 15% and 50% respectively.

Corporate gross loan portfolio reached RUB485 billion, up 17% from January 1, 2013 and retail gross loan portfolio grew by 25% to RUB76 billion for the same period. Total net loan portfolio (after provisions and excluding interbank loans) increased by 19% compared to January 1, 2013 and made up RUB533 billion as at January 1, 2014.

For 2013 the share of customer accounts in liabilities grew to 81% from 79% as at year end 2012. As at January 1, 2014, the ratio of net loans to total customer accounts was 103% (2012: 101%). The volume of wholesale public debt (syndicated loans, Eurobonds, Russian bonds, perpetual bonds) decreased by 4% from RUB101 billion as at January 1, 2013 to RUB97 billion as at January 1, 2014.

For 2013 total customer accounts and deposits (retail and corporate) increased by 9% from January 1, 2013. Corporate customer deposits grew by 5%, retail customer deposits – by 18% from the year end 2012. The share of demand deposits in total customer accounts grew from 28% as at January 1, 2013 to 31% as at January 1, 2014.

PSB capital (“own funds” as defined in the RAS) as at January 1, 2014 amounted to RUB96 billion, up 25% from January 1, 2013. CBR N1 capital adequacy ratio reached 12.0% level compared with 11.4% as at January 1, 2013. According to CBR Regulations 395-P “On the methodology for defining the value of own funds (capital) of credit institutions (Basel III)” taking effect from January 1, 2014, core Tier 1, Tier 1 and Total Capital ratios were 6.7%, 7.1% and 11.4% accordingly.

PSB Chief Financial Officer Vladislav Khokhlov comments on the published results: “Amidst the Russian economic slowdown and with the tightening of banking sector regulation, our results prove the correctness of our strategy for 2013-2014. PSB showed moderate assets growth combined with a comfortable liquidity level and significant increase of capital. Besides, we deliver decent fees and commission income growth (+13% y-o-y), we do not increase our general and administrative expenses. Cost of risk in the Bank is, meanwhile, at the market level”.

For reference: RAS balance sheet data largely reflects the results of PSB operations in 2013. However, more detailed information about PSB 2013 results will be disclosed in IFRS financial statements to be released in 1Q 2014 and to be followed by a conference-call with investors and analysts.