AO Raiffeisenbank announces today its unaudited financial results for the first half of 2015. AO Raiffeisenbank results are provided in accordance with International Financial Reporting Standards (IFRS) and may differ from the «Russia» segment data in Raiffeisen Bank International AG (RBI) financial report as a result of the difference arising from consolidation and translation to Euro.
Net profit rose 15% to RUB 11 765.5 million in the first six months of 2015.
Total loan portfolio before provisioning dropped by 9.7% to RUB 540 940.1 million due to a decrease in loan portfolios in the following business segments: retail business — down 8.0% to RUB 193 347.3 million, large business — down 10.6% to RUB 310 387.0 million, small and micro business — down 20.7% to RUB 16 799.3 million.
Return On Equity (ROE before tax) reached 29.2% in the first half of 2015 (up 7.4 percentage points compared to the same period of 2014). ROE after tax rose 6.0 percentage points year-on-year reaching 23.8%.
«Financial results for 1H2015 reflect the healthy dynamics of our business development despite turbulent economic environment, — said Sergei Monin, Chairman of the Board of Raiffeisenbank.- The bank is persistent in its pursuit of RBI strategy for reducing the risk weighted assets (RWA) which allow us to constantly increase the efficiency of our business, thus remaining among the leaders of banking industry in terms of return on assets and capital».
Share of liquid assets was up 1.4 percentage points compared to the end of 2014 reaching 27.2%. The Bank has sufficient liquidity buffer exceeding the CBR liquidity requirements: as of 01.07.2015, the H3 ratio was 254.4% compared to the minimum requirement of 50%, and the H4 ratio was 53.4% versus the maximum requirement of 120%.
«Historically, we`ve built a solid liquidity cushion and managed to retain high capitalization rate. Besides that, the bank concentrates on cost-to-income ratio which we improved by more than 8.0 pp., — said Arndt Roechling, Head of Financial Directorate of Raiffeisenbank. — We managed to maintain an optimal ratio level by implementing efficient cost optimization policy, as well as improving existing business processes and technologies».
Customer accounts remained nearly unchanged from the end of 2014 (down 1.7%) at RUB 522 787.3 million rising 13.0% year-on-year.
H 1.1 and H 1.21 ratios were at a high level of 9.5% and 10.2%, respectively, as of 01.07.2015. The H 1.0 ratio increased by 1.1 percentage points compared to the end of 2014 reaching 13.2%.
|6 months 2014, |
|6 months 2015, |
|Net interest income before provisioning for impairment losses6||20 418.8||21 862.1||7.1%|
|Additional provisioning||3 133.7||7 516.6||139.9%|
|Net fee and commission income||5 166.2||5 537.6||7.2%|
|Trading result||1 252.0||5 767.3||360.6%|
|Administrative and other operating expenses||11 767.4||11 653.5||-1.0%|
|Profit before tax||12 537.0||14 458.3||15.3%|
|Net profit||10 233.3||11 765.5||15.0%|
|Cost-to-income ratio||43.1%||34.7%||-8.4 п.п.|
|ROE before tax||21.8%||29.2%||7.4 п.п.|
|ROE after tax||17.8%||23.8%||6.0 п.п.|
|Assets||893 279.8||842 772.9||-5.7%|
|Liquid assets||230 784.9||228 824.5||-0.8%|
|Loans and advances to customers before provisioning:||599 343.6||540 940.1||-9.7%|
|Retail customers||210 110.1||193 347.3||-8.0%|
|Small and micro businesses||21 172.9||16 799.3||-20.7%|
|Medium businesses||20 773.8||20 403.8||-1.8%|
|Large businesses||347 282.5||310 387.0||-10.6%|
|Customer accounts||531 900.5||522 787.3||-1.7%|
|Funds obtained from parent bank||61 993.2||65 537.3||5.7%|
|Equity||100 658.4||97 423.9||-3.2%|
|Share of loans individually determined |
to be impaired in total loan portfolio
|Total Basel III capital adequacy ratio||18.3%||20.5%||2.2 п.п.|
|H1.0 capital ratio |
(calculated in accordance
with the CBR methodology)
1 Basel III calculated in accordance with the methodology of the Central Bank of the Russian Federation.
2 Calculated by subtracting from «Operating income» the following items: «Provisions for loan impairment», «Provisions for credit related commitments», «Provisions for investment securities held to maturity».
3 Trading result includes: losses net of gains from trading securities, gains less losses from other securities at fair value through consolidated profit or loss, gains less losses/(losses, net of gains) from redemption of investment securities available for sale, gains less losses from trading in foreign currencies, unrealized gains less losses/(losses, net of gains) from derivative financial instruments, realized gains less losses from derivative financial instruments (excluding realized result from derivative financial instruments — cross-currency interest rate swaps, currency swaps, and interest rate swaps), foreign exchange translation (losses, net of gains)/gains, net of losses, ineffectiveness from the hedge accounting.
4 Total net income from transactions in trading securities and securities at fair value through consolidated profit or loss.
5 Including following items: gains less losses from exchange operations, unrealized gain excluding derivatives business, losses net of gains from foreign currency revaluation, inefficiency of hedge accounting and other derivative instruments.
6 Including the net realised result from derivative financial instruments (cross-currency interest rate swaps, currency swaps, and interest rate swaps).