Profit after tax increased by 45.0% to 9 032.2 mln rubles in the first nine months of 2011 y-o-y, mainly due to an increase in net interest income by 15.2% (from 15 864.6 mln rubles in the first 9 months of 2010 to 18 277.2 mln in the first 9 months of 2011), and to a decrease in charge of provision for loan impairment by 52.3% to 1 192.7 mln in the first 9 months of 2011 as compared to 2 498.1 mln rubles in the first 9 months of 2010.
Operating income before deduction of provisioning charge rose by 15.9% to 27 817.3 mln rubles in the first 9 months of 2011 y-o-y.
The cost-to-income ratio continued to decline and was at 51.1% as of September 30, 2011 compared to 54.5% as of December 31, 2010.
Return on equity (ROE) after tax amounted to 13.6% (annualized) as compared to 8.8% in 2010.
There was a loss from operations with trading securities amounting to 1 704.4 mln rubles (compared to 803 mln rubles of income in the first 9 months of 2010). Losses were mainly due to the negative revaluation of the bank’s trading securities portfolio due to volatility on equity markets in the 3rd quarter of 2011. This loss was offset by interest income earned on trading securities totaling 3 089.9 mln rubles.
The gross loan portfolio increased by 28.4% compared to the end of 2010 amounting to 398 641.5 mln rubles thanks to lending to both the corporate and retail customers.
Loan portfolio quality continued to improve: the share of non-performing loans in the bank’s loan portfolio amounted to 5.9% as of September 30, 2011 compared to 8.8% at the end of 2010 (data on the share of nonperforming loans in the loan portfolio are in line with the report of Raiffeisen Bank International for 9 months of 2011).
Customer deposits and their share in bank liabilities continued to grow. Customer deposits rose by 43.6% to 411 890.7 mln rubles in the first 9 months of 2011 thanks to growth in the retail and corporate segments. Their share was 78.3% as of September 30, 2011 compared to 67.9% as of December 31, 2010.
Loans to deposits ratio was 96.8% as of September 30, 2011.
Term borrowings from the Parent Bank amounted to 57 282.1 mln, a decrease of 29.4% compared to the end of 2010 as a result of contractual repayments.
Bank’s balance sheet equity rose by 5.5% in the first 9 months of 2011 thanks to retained earnings, and totaled 90 598.6 mln rubles.
The performance indicators of ZAO Raiffeisenbank for the first 9 months of 2011 are provided in accordance with International Financial Reporting Standards (IFRS), and may differ from those in the «Russia» segment in the financial report of Raiffeisen Bank International due to differences arising from consolidation.
ZAO Raiffeisenbank is a subsidiary of Raiffeisen Bank International AG. Raiffeisenbank ranks 10th among the Russian banks in terms of assets, based on Q3 2011 results (Interfax-CEA). According to the same Interfax-CEA data, ZAO Raiffeisenbank ranked 5th in terms of private deposits and 6th with regard to consumer lending.
Raiffeisen Bank International AG regards both Austria, where it is a leading corporate and investment bank, and Central and Eastern Europe (CEE) as its home market. In CEE, RBI operates an extensive network of subsidiary banks, leasing companies and a range of other specialised financial service providers in 17 markets. RBI is the only Austrian bank with a presence in both the world’s financial centres and in Asia, the group’s further geographical area of focus. Around 60,000 employees service about 13.5 million customers through around 3,000 business outlets, the great majority of which are located in CEE. Raiffeisen Bank International is a fully-consolidated subsidiary of Raiffeisen Zentralbank Oesterreich AG (RZB). RZB indirectly owns around 78.5 per cent of the common stock, the remainder is in free float. RBI’s shares are listed on the Vienna Stock Exchange. RZB is the central institution of the Austrian Raiffeisen Banking Group, the country’s largest banking group, and serves as the group head office of the entire RZB Group, including RBI.