OREANDA-NEWS. Renaissance Capital, a leading emerging and frontier markets investment bank, today announced its financial results for the full year ending 31 December 2015. During the reporting period, the Firm’s net profit from the core business grew to $23 million, marking a third consecutive year of net profit growth, representing a 64% increase YoY.

Revenues were supported by solid performances across Global Markets and Investment Banking despite continued headwinds in the markets where the Firm operates.

Operating expenses decreased 26% YoY to $148 million as a result of continuous cost-focus measures introduced in 2013. Operating income reached $184 million.

The Firm’s equity-to-assets ratio improved to 15.1% from 13.4% a year earlier. Total assets and equity stood at $3,059 million and $462 million, respectively, as of the end of the reporting period.

Igor Vayn, CEO, Renaissance Capital, commented: “I am pleased to say that we have increased profitability for a third consecutive year despite the challenging conditions in our core markets. This demonstrates our ability to strengthen and adjust our offering to the changing global landscape. As a core achievement for the Firm in 2015, we signed a strategic partnership with CITIC Group, China's leading financial conglomerate, the Russian Direct Investment Fund, and ONEXIM Group to promote the interests of Russian companies and Chinese investors in high-opportunity projects in Russia, the CIS, the Middle East and Africa.”

He added: “Going into 2016, we see a potential recovery in our universe as oil and commodity prices stabilize. In Q1 we have completed the first Eurobond sale this year from Russia by Gazprom and another successful bond swap for IMH Koks, which will hopefully pave the way for other placements from this part of the world. We are also pleased to announce that Renaissance Capital is the first investment bank to have recently attracted equity capital for a company focused on Iran.”

Among notable deals in 2015, Renaissance Capital advised on the first US dollar international corporate new issue out of Russia for IMH Koks, the third ever IPO in Rwanda for Crystal Telecom, the sale of the DEG holding in TBC Bank, and the IPO of GHC, a healthcare services provider (Georgia), among other key transactions.

Renaissance Capital has also expanded its Frontier trading and research capabilities to include Pakistan, Bangladesh and Sri Lanka. In December 2015, the Firm opened an office in Cape Town, South Africa.

The Firm further strengthened its core team by appointing James Friel as Global Head of Investment Banking and Temi Popoola as CEO of the Firm’s Nigeria hub. Other senior hires were made in fixed income, research and trading.

In the reporting period, Renaissance Capital continued with a series of its flagship investor events across the emerging and frontier markets universe, including the 1:1 annual investor conferences in Nigeria and Russia, as well as the East Africa Investor Conference in Nairobi, Kenya. The Firm also hosted bespoke regional trips to Tanzania and Rwanda, as well as the Firm’s first ever investor trip to Ethiopia.

* IFRS-audited results