OREANDA-NEWS. April 05, 2013. Alfa Banking Group, which includes Alfa-Bank and its subsidiaries, reported audited IFRS financial results for the full year 2012.

Net profit of the Alfa Banking Group for the period amounted to USD 829 million (2011 — USD 641 million) which is the highest reported annual profit in the history of Alfa Banking Group. Return on average equity stood at 21.9%. Total equity increased by 20.9% to USD 4.2 billion after a USD 182 million dividend backed by steady growth of retained earnings. Alfa Banking Group maintained a capital adequacy ratio of 15.6% (December 31, 2011 — 16.7%).

In the reporting period the Alfa Banking Group recorded a surge of its total assets of 46.4% to USD 45.9 billion at December 31, 2012 from USD 31.4 billion at December 31, 2011, which outpaces the growth of banking sector by more than two times. As at December 31, 2012, total gross corporate loans increased by 33.1% to USD 27.2 billion (USD 20.4 billion as at December 31, 2011), while total gross loans to individuals increased by 68.7% to USD 4.6 billion (USD 2.8 billion as at December 31, 2011), mostly represented by growth of credit card loans, cash loans and consumer loans. Significantly improved loan portfolio quality together with problem loans resolution and high growth caused the decrease of overall provisioning rate from 5.9% as at December 31, 2011 to 4.0% as at December 31, 2012. Share of overdue loans (by one and more days) in total portfolio decreased from 2.6% as at December 31, 2011 to 1.6% as at December 31, 2012.

In the funding structure of the Alfa Banking Group, customer accounts grew by 47.0% to USD 26.8 billion as of December 31, 2012 (USD 18.3 billion as of December 31, 2011). In September 2012, Alfa Banking Group placed USD 750 million subordinated Loan Participation Notes maturing in 2019 and bearing a fixed interest rate of 7.5% per annum. In August 2012, Alfa Banking Group issued RUB 5 billion three-year ruble bonds with a year and a half put option and an interest rate of 8.6% per annum. In September 2012, Alfa Banking Group issued RUB 10 billion three-year ruble bonds with a 1-year put option and interest rate of 8.45% per annum. The total amount of debt securities issued increased by 28.8% to USD 5.9 billion as of December 31, 2012 (USD 4.6 billion as of December 31, 2011).

The Alfa Banking Group 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 6.6% at 31 December, 2012 according to management accounts and CBR statistics. In 2012, Alfa Banking Group 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 Banking Group 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 2012, Fitch Ratings upgraded the long term credit rating of Alfa-Bank to BBB-, stable outlook. It was the first time ever that a Russian private bank had been assigned an investment grade rating by one of the leading international rating agencies. In December 2012, Standard & Poor’s raised the long-term credit rating on Alfa-Bank to BB+, stable outlook. In March 2012, Moody’s confirmed their rating at Ba1, stable outlook.