OREANDA-NEWS. May 3, 2012. Open Joint-Stock Company “The Agency for Housing Mortgage Lending” has released the 2011 IFRS Consolidated Financial Statements of the AHML Group of Companies (OJSC “The Agency for Housing Mortgage Lending”, OJSC “The Agency for Restructuring of Housing Mortgage Lending”, OJSC “Insurance Company AHML”, CJSC “First Mortgage Agent of AHML”, CJSC “Second Mortgage Agent of AHML”, CJSC “Mortgage Agent of AHML 2008-1”, CJSC “Mortgage Agent of AHML 2010-1”, CJSC “Mortgage Agent of AHML 2011-1” and CJSC “Mortgage Agent of AHML 2011-2”). The reliability of the statements was confirmed by Ernst & Young LLC.

The statements cover three operating segments of the AHML Group of Companies – wholesale purchases of mortgage loans, restructuring of mortgage loans and mortgage insurance. To decide on resource allocation and assess performance by segment, operating results for each of the segments are monitored separately.

In 2011, the Group’s net income under IFRS increased by 9.8% y-o-y to RUB 7,967m.

The Group’s assets reported as at 31 December 2011 were RUB 268,929m, having gained 36% over the reporting period (compared to RUB 197,458m as at 31 December 2010). The mortgage portfolio grew by 18.9% y-o-y to RUB 156.8bn. The loans issued to banks, including under the Stimulus Programme, grew over four times against 2010 ending the year 2011 at RUB 15.2bn. To further expand the mortgage securities market, the Group purchased third parties’ mortgage-backed securities of RUB 8.02bn throughout 2011. Asset acquisitions were mainly funded by bond issues, including the Group’s mortgage-backed securities, and a loan taken from Vneshekonombank.

To support the market, the Agency maintained low interest rates across its mortgage product line throughout 2011. As a result, despite the overall growth of mortgage portfolio, its operating income before allowance for impairment and loss on initial recognition of mortgage and stabilization loans somewhat decreased in 2011 to RUB 12,907m (down 0.32% year-on-year).

With borrowers’ solvency gradually recovering and quality of mortgage loans originated after the downturn improving, the reversal of allowance for mortgage and stabilization loans continued on its 2010 uptrend and reached RUB 321m in 2011 (compared to RUB 1,466m in 2010). Thus, the allowance shrank over the year from 4.23% of the portfolio at the end of 2010 to 3.31% at the end of 2011. At the same time, the overdue ratio (overdue to total outstanding) also decreased as at 31 December 2011 making 8.3% (versus 9.98% in 2010).