OREANDA-NEWS. Vnesheconombank published consolidated financial statements of the VEB Group for the first half of 2016 as prepared in compliance with IFRS.

The VEB Group’s key performance indicators are as follows:

  • In H1 2016 the VEB’s Group equity increased by RUB 35.9 billion (+7,5%) to reach RUB 516.7 billion as at 30.06.2016. Alongside with the subsidies from the federal budget provided in H1 in the amount of RUB 109.5 billion as compensation of costs related to servicing foreign capital markets borrowings, and the recognition as additional paid-in capital of a subsidy of RUB 1.6 billion for the implementation of priority investment projects in the Far East and Baikal region, positive balance of an unrealized revaluation of securities had a positive effect on the VEB’s equity. VEB’s capital adequacy ratio (RAS) as at 01.07.2016 amounted to 11%.
  • Net interest income went up by 15.3% as compared with the same period of 2015. The rise is accounted for by an increase in interest income, as well as decrease in interest expense primarily brought about by a decrease in amounts due to the Russian Government and the Bank of Russia.
  • As estimated by the Bank’s management earlier, Q2 2016 saw significant slowdown of provisioning pace as compared with Q1 2016 (allowance for impairment of interest earning assets amounted to RUB 24 billion and RUB 176.2 billion correspondingly). In Q2 2016 the Bank demonstrated an improved financial result as compared with Q2 2015 (+61.7%) and with Q 1 2016 (+58.0%). However a decline in the currency rates against the ruble lead to a negative revaluation, impacting the H1 result. The impact of the mentioned unfavourable factors determining the negative result of RUB 82.8 billion in H1 (financial result of Q1 2016 was RUB -58.3 billion, financial result of Q2 2016 was RUB -24.5 billion) was partially mitigated by the net recognition of the government grants in the amount of RUB 135.9 billion, as part of the state support measures.

EXIAR (in H1 2016) - insurance for loans to finance the creation of export-oriented manufacturing: in May 2016 EXIAR insured a 3.6 billion Euro loan of over 15 years to Yamal LNG JSC.