Add to favorite
Photo Credit: http://yarnovosti.com
According to the preliminary reporting under Russian Accounting Standards (RAS), net profit of Promsvyazbank (PSB) for the first half of 2015 amounted to RUB8.6 bn, compared to RUB3.0 bn for the same period last year, according to a press release. 1H 2015 net profit was mainly driven by cash contributions from majority shareholders in May 2015, totaling RUB13.8 bn, which according to RAS are included in other operating income, says the official website.
“As expected, net interest margin in Q2 2015 began to recover: net interest income increased by 13% quarter-on-quarter and by the end of 1H 2015 amounted to RUB11.5 bn. A positive trend also persists in net fee and commission income, which in 1H2 015 increased by 15% year-on-year to RUB7.1 bn. Income from operations with securities, foreign currency and financial derivatives showed strong dynamics in the reporting period and amounted to RUB5.6 bn against RUB0.2 bn in 1H 2014. As a result, PSB posted a 12% increase in net operating income (excluding cash contribution) on a like-for like basis, to RUB28.5 bn,” says the statement.
“PSB continued its operating cost reduction and optimization efforts launched at the end of 2014. During 1H 2015, administrative and operating expenses decreased by 19% compared to the same period last year, to RUB11.8 bn. Cost-to-income ratio decreased from 58% to 41%. PSB remained committed to a conservative policy on provisioning amid unfavorable macroeconomic conditions. In 1H 2015, loan loss provision charges grew 2.5x year-on-year, to RUB20.9 bn,” the press release goes on to say.
According to the bank, total loans (before provisions and excluding interbank loans) decreased by 2% compared to the end of 2014 and stood at RUB829 bn as at 1 July 2015. Loan portfolio reduction was due in equal measure to the effect of the ruble rate recovery at the balance sheet date against the beginning of 2015, and a cautious credit policy of PSB amid high-risk conditions and persisting high interest rates. In 1H 2015, corporate loan portfolio was RUB739 bn, a 2% reduction compared to the end of 2014, while retail loan portfolio decreased by 6% to RUB90 bn.
Founded in 1995, PromSvyazBank (PSB) is a leading Russian privately owned bank with assets of RUB1.0 trln and Basel III total capital of RUB130 bn as at 1 April 15 according to IFRS. According to RIA Rating, PSB ranks 11th in terms of assets among the leading Russian banks as at 1 April 2015. According to the current ranking of The Banker, PSB is a Top 500 bank globally in terms of capital.
Sources: http://www.psbank.ru
Author: Mikhail Vesely
