OREANDA-NEWS. October 29, 2008. B.I.N.BANK has issued its IFRS Consolidated Financial Statements for the 6-month period ended June 30, 2008, reported the press-centre of B.I.N.BANK.

Notwithstanding the latest events in stock and financial markets the Bank demonstrated stable and decent financial results. B.I.N.BANK anticipated the situation early in May 2008 and started its preventing measures beforehand. Thus, the size of provisions was significantly increased and conditions of the lending policy were strengthened.

These measures resulted in massive liquidity cushion which was accumulated to the amount exceeding RUB 10 bln. Such liquidity reserve allows the Bank to navigate safely in conditions of this autumn financial collapse. The great portion of the Banks funds was accumulated with CBR and in AAA investment securities that reduced the volume of working assets and had some pressure on profitability. Bank is conservative in liquidity management and invests only in high-liquid and low-risk instruments without being involved in speculative operations.

Among positive trends we can note the growth of assets from RUB 64,3 bln. as of December 31, 2007 to RUB 68,8 bln. as at June 30, 2008, increase of the total equity up to RUB 8,5 bln. and loan portfolio from RUB 38,7 bln. to RUB 43,2 bln. Generally, the loan portfolio became more balanced and diversified. Loans to individuals progressed by 25% and amounted to RUB 15,6 bln. The Banks customer accounts represent stable funding base and show the expansion up to RUB 50,5 bln. from RUB 47,2 bln. as of December 31, 2007.

Net profit is quite modest and amounts to RUB 134,5 mln. against RUB 620,2 mln. for the 6-month period of the last year. Except the above mentioned reasons we also attribute this fact to changes in accounting transformation procedures which require creation of the additional provisions.