OREANDA-NEWS. On 19 February 2008 was announced, that V.I.Yakunin, President of RZhD, Chairman of the Board of Directors of the Bank, chaired a regular meeting of the Board in Moscow.  The Bank’s 2007 performance and approval of the Financial Plan for 2008 were the major items on the agenda.

The Board approved the Bank’s performance noting a significant improvement of all its key financial indicators.  Indeed, the Bank generated RUR2.5 bn or $101.5 mln of net profit, 15% up from the 2006 figure.  Net assets increased by 65% reaching RUR118.4 bn ($4.8 bn) with the loan portfolio growing by 51% to RUR81.8 bn ($3.3 bn).

TransCreditBank’s retail business has been developing at an accelerated pace.  Thus, in 2007 its retail loan portfolio doubled to RUR34.8 bn ($1.4 bn), the Bank issued 364,000 cards (vs. 190,000 cards in 2006), installed 435 ATMs and rapidly developed its regional network.  TransCreditBank opened 33 new sales outlets, including 7 branches.  The Bank aggressively developed its investment business, based on 2007 performance it ranked #6 in Russia for the total size of arranged bond offerings (#19 in 2006).

In 2007 TransCreditBank made its entry to the international and domestic debt capital markets.  In May the Bank placed its 3 years’ $400 mln Eurobond carrying a 7% annual coupon, followed by two bond issues for the total of RUR6 bn in June (series 01 maturing in 3 years with 7.29% p.a. coupon, series 02 maturing in 5 years with 7.28% p.a. coupon).

The Board approved 2008 financial plan, with net profits projected at RUR3.2 bn, net assets – at RUR210.8 bn, loan portfolio – at RUR147.6 bn.  The Bank will continue to make major investments in its regional network and banking technology.  In 2008 subsidiary banks will be consolidated and switched to a single brand.

Fast development of the Bank in 2008 will largely rely on increase of its charter capital.  The Board approved the Resolution on Issue of 600,000 Additional Ordinary Registered Shares at RUR1 Face Value Each as well as the Issue Prospectus.  Following the additional stock issue the Bank’s capital will increase by RUR4.8 bn by July 1, 2008.  The Bank contemplates placing 2 more bond issues for the total of up to RUR15 bn.