OREANDA-NEWS. April 23, 2012. Alfa-Bank Russia, which includes Alfa-Bank and its subsidiaries, reported audited IFRS financial results for the full year 2011, reported the press-centre of Alfa-Bank. 

Net profit of the Alfa-Bank Russia for the period amounted to USD 641 million (2010 — USD 553 million) and is the highest recorded profit in the 20-year history of Alfa-Bank Russia, representing a 19.7% return on average equity.

Total equity increased by 11.6% to USD 3.4 billion net of a USD 131 million dividend backed by steady growth of retained earnings. Alfa-Bank Russia maintained a high capital adequacy ratio of 16.7% as of December 31, 2011 (December 31, 2010 — 18.2%).

In the reporting period the Alfa-Bank Russia recorded an increase of its total assets of 10.1% to USD 31.4 billion at December 31, 2011 from USD 28.5 billion at December 31, 2010.

As at December 31, 2011, total gross corporate loans increased by 28.5% to USD 20.4 billion (USD 15.9 billion as at December 31, 2010), while total gross loans to individuals increased by 20.5% to USD 2.8 billion (USD 2.3 billion as at December 31, 2010).

The faster growth of loans compared to growth of assets is a result of utilizing excess liquidity on the balance sheet during 2011. Significantly improved loan portfolio quality together with higher-than-market growth rate caused the decrease of overall provisioning rate from 7.6% as at December 31, 2010 to 5.9% as at December 31, 2011.

Share of overdue loans (by one and more days) in total portfolio decreased from 4.7% as at December 31, 2010 to 2.6% as at December 31, 2011. Total provisions remained at almost the same level of USD 1.4 billion. In the funding structure of the Alfa-Bank Russia, customer accounts grew by 8.6% to USD 18.3 billion as of December 31, 2011 (USD 16.8 billion as of December 31, 2010).

In April 2011, Alfa-Bank Russia placed USD 1 billion Loan Participation Notes maturing in 2021 and bearing a fixed interest rate of 7.75% per annum. In February 2011 Alfa-Bank Russia placed Series 01 RUB 5 billion five-year ruble bonds with a three-year put option and coupon payments of 8.25% per annum for the first three years.

In December 2011 Alfa-Bank Russia placed its Series 02 RUB 5 billion five-year ruble bonds with a year and a half put option and coupon payments of 9.25% per annum for the first year and a half. In December 2011, Alfa-Bank Russia successfully closed a USD 250 million syndicated loan with a 12 month maturity which bears an interest rate of 175 basis points over LIBOR, the lowest interest rate among Russian private banks for this kind of deal in 2011.

The total amount of debt securities issued increased by 12.5% to USD 4.6 billion as of December 31, 2011 (USD 4.1 billion as of December 31, 2010). At December 31, 2011, Alfa-Bank Russia held approximately 7% of its total assets in cash, without short-term interbank instruments. Furthermore, Alfa-Bank Russia maintains an investment portfolio of highly liquid assets available for sale in the amount of USD 0.9 billion, and has access to secured borrowing facilities provided by the Central Bank of Russia. Alfa-Bank Russia has maintained its position as the top Russian private bank by total assets, total equity, customer accounts and loan portfolio.

Market share by retail demand accounts is constantly growing and represented 6.2% at 31 December, 2011 according to management accounts and CBR statistics. In 2011, the Alfa-Bank Russia continued its development as a universal bank with the following core business lines: corporate and investment banking (including SME, trade and structured finance, leasing and factoring), retail banking (including consumer finance, retail lending and credit cards, current accounts and deposits, services through remote channels).

According to the strategy of the Alfa-Bank Russia adopted in December 2011, the strategic priority is to maintain its status as the leading private bank in Russia, while enhancing stability and profitability, and to set the industry standards in key areas such as customer experience, technology, efficiency and teamwork.

In July 2011, Fitch Ratings upgraded the long term credit rating of Alfa-Bank Russia to BB+, stable outlook. In December 2011, Standard & Poor’s raised the long-term credit rating on Alfa-Bank Russia to BB, stable outlook. In March 2012, Moody’s confirmed their rating at Ba1, stable outlook. Alfa-Bank Russia’s full year 2011 IFRS figures have been audited by PricewaterhouseCoopers.