OREANDA-NEWS. OJSC "URALSIB" reports the results of operations for the period 12 months ended 31 December 2014 in accordance with IFRS.

By the end of 2014, net interest income increased by 1.0 billion rubles. Similar figure for the Banking Group (hereinafter BG), which includes consolidated in the report of the leasing group increased by 0.6 billion rubles, the Net interest margin of the Bank increased from 5.0% to 5.9% and from 4.8% to 5.7% in BG. Net fee and commission income of the BG decreased by 4.4%.

The main factors that had a negative impact on the performance of the Bank and BG, was a sharp fall of the ruble and the growth rates in the second half of 2014, which resulted in an increase in reserves on foreign currency loans and a negative revaluation of the related off-balance sheet guarantees and sureties, as well as additional costs for swap operations, the volume of which has increased because of the situation on the interbank market. Taking into account this effect other non-interest income of the BG was a negative 4.7 billion rubles.

The expenses for formation of reserves (excluding the effect of currency fluctuations) increased compared to 2013 and amounted to 5.5 billion rubles in Bank and RR 6.8 billion in the whole BG, reflecting emerging in 2014, the declining trends in credit quality borrowers in the backdrop of the deteriorating economic environment.

During 2014, the Bank continued the implementation of the strategic program for increasing the efficiency of business processes, which resulted in administrative costs and personnel costs of the Banking Group decreased by 1.7 billion rubles, or by 8.0% compared with 2013.

The Bank's financial result for 2014 excluding the effect of consolidation of the leasing group amounted to 4.1 billion rubles loss. On the consolidated financial statements the amount of loss of the Banking Group amounted to 9.5 billion rubles.

In 2014, the Bank continued to implement programmes to strengthen the capital base, which resulted in the 1st quarter of 2014 the Bank placed an additional issue of shares in the amount of 1.4 billion rubles, in the 4th quarter of 2014 attracted a subordinated loan at 4.0 billion rubles., and in the 1st quarter of 2015, the Bank completed the placement of subordinated Eurobonds for another 5.1 billion rubles.

"2014 proved to be challenging from the point of view of the external environment in which operated the Bank, which affected financial performance under IFRS reporting. Nevertheless, the Bank managed to strengthen the revenue base and to reduce operating costs, deciding the goals that we set as the main priorities for 2014, " notes the Deputy Chairman of the management Board Alexey Sazonov. – In 2015, we continue to focus on increasing the capital base and further reducing operating expenses and improving the overall effectiveness of the business."

The Bank's capital adequacy at December 31, 2014, calculated in accordance with the provisions of the Basel accords, remains at a high level and 13.9% at the minimum level of 8.0%.