OREANDA-NEWS. May 05, 2014.

Income statement highlights:

Net profit of the Bank for the year ended 31 December 2013 increased by19% to 2.38 bln. RUB.

Net interest income increased by 17.7% to 7.6 bln. RUB.

Net interest margin increased to 2.6% from 2.4% compared to 2012, whereas in the second half of 2013 net interest margin made 2.7%.

Net commission income increased by 20%, to 1.5 bln. RUB.

Operating income (before provision) including income from banking as well as investment and other businesses of the Bank, increased by 2.6% during the year to 13.5 bln. RUB.

The Bank decreased provision for impairment by 7% to 2.88 bln. RUB, whereas cost of risk decreased to 1.3% from 1.6% compared to 2012.

Statement of financial position highlights:

The share of total credit portfolio within the assets increased insignificantly - to 64.5% from 64.3%.

The Bank’s assets increased by 9.4% following the 10.6% growth in the year-earlier period.

Individuals loan portfolio (before provision) for the year 2013 increased by26.9%, which is rather more moderate than mid-market indicator making +28.7%. The loans to individuals share within loan portfolio increased to 23% from 20% in comparison to the end of 2012.

Customer accounts increased by 19%. As opposed to a number of medium-sized banks, the Bank has not experienced the outflow of deposits in the IV quarter of 2013.

Financial and operating review:

Income attributable to banking increases steadily: net interest income (before provisions) increased by 18% to 7.6 bln. RUB.

Legal entities credit portfolio (including REPO, before provision) increased by 4.2%.

Total share of overdue loans as of the end 2013 was6.6% vs. 7.3% in 2012.

Credit portfolio concentration: in 2013, 38% of credit portfolio was accounted for by 31 borrowers (in 2012, 35.2% of credit portfolio accounted for by 24 borrowers).

Securities portfolio is mainly represented by OFZ (Federal Loan Bonds) and corporate bonds (securitities portfolio net of repurchase receivables in total amounted to 35.8 bln.), therewith equity securities decreased considerably - to 4.5 bln. RUB. Securities with investment rating by Fitch make most of the bonds portfolio (97.6%).

In 2013, the Bank decreased investment properties more than twofold (to 11.9 bln. RUB) reducing non-bank risk exposure.

As of year-end 2013, total capital ratio equaled to 14.5% compared to 13.6% as of year-end 2012.

Return on equity at year-end increased to 8% from 7.2% in 2012.