OREANDA-NEWS. October 09, 2013. Income Statement Highlights for January-September 2013 (as compared to January-September 2012):

Net interest income grew by 15.2% y-o-y

Net fee and commission income grew by 12.2% y-o-y

Operating income before total provisions increased by 14.1% y-o-y

Total provision charge was RUB83.5 bn vs. a RUB39.5 bn charge in January-September 2012

Operating expenses were up by 12.1% y-o-y

C/I ratio declined from 39.4% to 38.7%

Profit before tax amounted to RUB350.5 bn vs. RUB336.7 bn for January-September 2012

Net profit amounted to RUB286.2 bn vs. RUB269.3 bn for January-September 2012

Net interest income came at RUB518.3 bn, up 15.2% compared to 9M 2012:

Interest income increased by RUB176.7 bn primarily driven by assets growth;

Interest expenses grew by RUB108.4 bn.

Net fee and commission income amounted to RUB158.6 bn, up by 12.2% Y-o-Y. Commission income related to other than lending grew faster than net interest income (+18.5%), totaled RUB147.6 bn. Plastic cards and acquiring services generated almost half (45%) of commission income.

Operating income before provisions increased by 14.1% y-o-y.

Operating expenses for 9M 2013 increased by 12.1% in comparison to expenses for 9M 2012. Main drivers of the operating expenses growth were: personnel expenses, administrative costs and depreciation. C/I ratio improved from 39.4% for 9M 2012 to 38.7% for 9M 2013.

Total provision charges amounted to RUB83.5 bn for January-September 2013 vs. RUB39.5 bn charge a year earlier. Total provision charges in September were RUB9.4 bn.

Profit before tax amounted to RUB350.5 bn vs. RUB336.7 bn for January-September 2012.

Net profit reached RUB286.2 bn for 9M 2013, up 6.3% compared to similar period of 2012.

Assets increased by RUB96 bn in September, or 0.7%, mainly due to growth of loan portfolio and amounts placed in securities.

The Bank lent about RUB640 bn to corporate clients in September 2013, which was higher than the average 9M2013 amount by a third. About RUB4.5 trln were lent to corporate clients for 9M 2013.

Corporate loan portfolio increased by RUB120 bn, or 1.6%, in September; YtD +5.1%.

About RUB150 bn were lent to retail clients in September (excluding credit cards turnover).

Retail loan portfolio grew by RUB71.8 bn, or 2.4%, in September, YtD +20.8%.

Quality of the loan portfolio remained stable: overdue loans decreased from 2.54% to 2.48% in September. Coverage ratio remained strong, with loan-loss provisions at RUB611 bn, or 2.26 times the overdue loans as of October 1, 2013.

Securities portfolio increased by RUB22 bn, or 1.3%, in September mainly due to investment in OFZ federal bonds.

The clients’ funds remain the core source of funding the Bank’s operations:

Retail deposits and accounts exceeded RUB7.2 trln as of October 1, increasing by 0.1% in September. Growth in deposits for 9M2013 (up RUB538 bn YTD, or +8,1%) outpaced the increase in deposits portfolio for the same period last year in both absolute and relative terms.

Corporate deposits and accounts amounted to RUB3.0 trln as of October 1. Reduction in balances (-2.4%) took place in September due to term deposits. While the volume of current accounts increased by 2.3%.

Regulatory capital (under CBR regulation No. 215-P) came to RUB1,905 bn as of October 1, 2013, as per preliminary calculations. In September capital increased by RUB30 bn mainly due to net profit and revaluation of investments in the Bank subsidiaries.

Capital adequacy ratio of the Bank (under RAS) amounted to 13.3% as of October 1, 2013 (preliminary data).