OREANDA-NEWS. April 19, 2011. BANK URALSIB (OJSC “URALSIB” or the Bank) (RTS: USBN) reports on IQ2011 financial results under Russian Accounting Standards (RAS)1.

The Bank’s net income at the 1-st quarter of 2011 reached 1.7 bln rubles, exceeding IQ2010 net income by 19.8%. During the reporting period core banking income reached 5.1 bln rubles. In particular, net interest income amounted to 3.5 bln rubles, while net fee and commission income reached 1.6 bln rubles, they both grew by 40.3% and by 34.3% in IQ2011 vs IQ2010 respectively. Net operating income reached 6.2 bln rubles, that is higher by 44.5% y-o-y 2010.

Due to the sale of securities the Bank’s net gains from operations with securities amounted to 557 mln rubles in IQ2011.

During the reporting period allowances for loan losses decreased, which reflects the improvement of financial position of the borrowers and their debt service quality.

The share of core banking income in total operating income (before allowances recovery) in IQ2011 amounted to 85.7% in IQ2011, and the share of volatile income in total operating income amounted to 12.7%.

Operating expenses/net operating income (before allowances recovery) ratio (C/I) amounted to 71.6% (77.8% in 2010).

The Bank’s assets as of 01.04.2011 amounted to 377.3 bln rubles.

In IQ2011 the Bank continued increasing its loan portfolio. Loans to customers reached 226.7 bln rubles, showing growth by 2.5% y-t-d. Loans to corporate clients increased to 160.6 bln rubles (by 4.9% y-t-d), loans to individuals shrank to 66.2 bln rubles (by 2.8% y-t-d). The share of NPLs in loan portfolio reduced to 9.6% as of 01.04.2011 vs 11.6% as of 01.04.2010.

Customer accounts as of 01.04.2011 amounted to 260.2 bln rubles, decreasing by 11.5% y-t-d. Corporate accounts reduced by 17.1% to 146.1 bln rubles, and individual accounts shrank by 3.1% to 114.1 bln rubles. Funds due to customers reduced because of the Bank’s liquidity management policy.

Loan portfolio/ customer accounts ratio as of 01.04.2011 grew to 87.1% vs 75.2% as of 01.01.2011.

Total regulatory capital (under CBR methodology) as of 01.04.2011 amounted to 52.6 bln rubles. The capital adequacy ratio (N1) exceeded the minimum required level and reached 13.8% as of 01.04.2011.

Note: 1 Numbers are calculated in accordance with URALSIB internal methodology