OREANDA-NEWS. July 05, 2010. MDM Bank has published its reviewed IFRS financial statements for the three months ended 31 March 2010.

Key performance indicators:

Due to efficient preparation for the financial crisis, MDM Bank has become the only bank of the largest Russian banks which did not utilize any additional capital support from shareholders or the state. At the same time, MDM Bank maintained one of the highest liquidity and capital adequacy ratios among leading Russian banks.

The Bank’s Tier 1 capital adequacy ratio stood at 18.8%, which was the best result among top Russian banks.

The Net Interest Margin remained stable at 6.6% amid the decrease of interest rates across the economy.

Retail deposits grew at a pace (13.8% YTD) exceeding the market average.

The loan to deposit ratio declined to 105.3% (compared to 121.6% at YE 2009).

Liquidity was preserved at a comfortable level of over 25% of assets, notwithstanding the repayment of wholesale borrowings exceeding RUB 20 bln in 1Q 2010.

A conservative approach to cost management provided for a reduction of administrative costs by almost 20% compared to 4Q 2009.

The amount of non-performing loans (NPL), categorized as loans 90 days or more overdue, remained at the level of YE 2009, in rouble terms.  The percentage of NPLs in the total loan portfolio increased insignificantly to 19.2%, which is primarily explained by the contraction of the loan portfolio. Meanwhile, the bank enhanced its loss absorption capacity to above 30% of the loan portfolio, which is approximately double the current level. 

The amount of restructured loans in 1Q 2010 decreased 11.6% to RUB 29 bln, which attests to the success of the Bank’s decision to restructure based on the borrower’s business viability assessment and improving the quality of collateral.