OREANDA-NEWS.  October 01, 2014. During the reporting period B&N Bank (ranks among Top-40 Russian banks in terms of assets) demonstrated a substantial growth of its key financial highlights.

Total assets of the Bank increased by 15% and amounted to RUB 250 billion (RUB 217.4 billion at 2013 year-end). Asset growth is mainly triggered by the increase in securities portfolio up to RUB 15.5 billion (+22%) and loans to customers up to RUB 159.8 billion (+17%). Corporate loans grew by 18% and amounted to RUB 139.5 billion (less provision for impairment), representing the majority of the loan book.

According to its development strategy B&N Bank continued to strengthen its position in a high-margin retail business. As a result, in 1H2014 the retail loan portfolio increased by 15% to RUB 20.3 billion (less provision for impairment).  Basically, growth of loans to individuals derived from the drastic expansion of the consumer lending programs. 

As of July 1, 2014 NPL 90+ ratio stood at 4.6% of the total loans in line with the market averages. In 1H2014 the Bank managed to decrease the loan concentration on real estate/construction sectors to 10% of the gross loan book (14% as of 2013 year-end).

Total liabilities as of June 30, 2014 increased by 13% and amounted to RUB 224.2 billion (RUB 199.2 billion as of 2013 year-end). Growth in liabilities was driven by the increase in funds due to banks and other financial institutions to RUB 12.4 billion and debt securities issued to RUB 14.9 billion. The latter increased due to the placement of BO-04 6-year exchange-traded bonds amounting to RUB 2 billion.  Customer accounts remained at the level of 2013 year-end and totaled RUB 170 billion. 

Tier 1 capital increased to RUB 25.8 billion (+42%) due to capital injections and current revenues. Capital adequacy ratios per Basel II approach stood at 10.4% for Tier 1 and 13.5% for Tier 2 reflecting a healthy capitalization level.  

Interest income of the Bank for the 6 months of 2014 increased by 29% and amounted to RUB 10.8 billion (YoY). Net interest income (before provisions) increased by 27% and amounted to RUB 3.3 billion. Net non-interest income rose to RUB 5.3 billion (+133%). Such a material growth derived from gains on FOREX operations and fee & commission income.  Net profit for the 6 months of 2014 totaled RUB 1.1 billion, an 8x increase as compared to the same period in 2013. Profitability ratios demonstrated a substantial growth: ROAA – 0.95% (YE 2013 – 0.39%), ROAE – 10.13% (YE 2013 – 4.91%).  

Current liquidity reserves remained traditionally high. CBR prudential ratios governing liquidity are well above the minimum regulatory requirements: N2 “Instant Liquidity”– 138.84% at min. 15%; N3 “Current Liquidity”– 150.26% at min. 50%; N4 “Long-Term Liquidity”– 59.57% at max.120%.

As of July 1, 2014 the Bank’s branch network covered 40 regions of the Russian Federation and accounted for 193 offices: 8 branches, 89 sub-branches, 89 operational offices, 6 operating cash desks and 1 representative office in the U.K. (located in London).