OREANDA-NEWS. December 18, 2012. Vnesheconombank releases consolidated financial statements under IFRS for the nine months of 2012.

1. Dynamics of main components of assets and liabilities

For the nine months of 2012 Vnesheconombank’s Group total assets amounted to 2 723 billion rubles. In comparison to the beginning of 2012 the assets grew by 191 billion rubles (+8%).

The growth in assets was mostly driven by the increase in the portfolio of loans extended to customers by 158.1 billion rubles (+13%) amounting to 1 387.1 billion rubles. The share of loans to customers in the assets of Vnesheconombank Group for the nine months of 2012 rose from 49% to 51%.

As compared with the beginning of the year 2012 the amount of investment financial assets available for sale increased from 454.3 billion rubles to 516.2 billion rubles (+14%). Increase in the assets mentioned was mainly due to the purchase in the first half year of 2012 of the financial assets (fair value of 47.8 billion rubles), representing entitlement to GPB (OJSC) shares with the Bank’s commitment to sell shares, as per the terms and conditions of an eight-year American call option sold.

The Amounts Due from Credit Institutions decreased by 56.7 billion rubles for nine months of 2012 to 401.0 billion rubles. This was largely due to the early partial repayment in the 1st half of the year of subordinated loans by GPB (OJSC) (the par value is 50 billion rubles). The loans were extended by Vnesheconombank under Law 173-FZ.

The following changes occurred in the resource base.

Total liabilities for the nine months of 2012 increased by 173.8 billion rubles (+9%) having reached 2 173 billion rubles. The main drivers for the growth being: increase in the amount of debt securities issued (by 102.3 billion rubles (+39%) to 363.3 billion rubles), increase in the amounts due to the Russian Government and the Bank of Russia (by 123.0 billion rubles (+14%) to 1 007.6billon rubles). Amounts due to the Bank of Russia increased by 106.7 billion rubles. This growth is mainly associated with the increase of short-term funding of subsidiary banks of Vnesheconombank Group (deposits and repo-transactions). Increase in the amounts due to the Russia Government amounted to 16.4 billion rubles and was caused by the growth in short-term deposits placed Ministry of Finance of Russia with Vnesheconombank subsidiary banks.

At the same time, the Amounts Due To Customers decreased by 27.0 billion rubles (-8%) equaling to 325.4 billion rubles. The decrease was due to the reduction of term deposits and current account balances. The Amounts Due to Credit Institutions also decreased: by 23.8 billion rubles to 448.3 billion rubles.

Vnesheconombank Group’s equity increased by 17.2 billion rubles since the beginning of the year, the main drivers being the profit received in the amount of 31.8billion rubles and decrease in unrealized revaluation of investment securities available for sale by 13.4 billion rubles.

2. Dynamics of main profit components

(analysis based on data comparison for the nine months of 2012 and the nine months of 2011, chronological average values for respective periods applied).

The profit for the nine months of 2012 amounted to 31.8 billion rubles. As compared with the same period last year the profit increased by 2.5 times.

Net interest income reached 59.5 billion rubles (+11.6 billion rubles from the same period last year).

Interest income for the nine months of 2012 increased by 33.4 billion rubles compared to the nine months of 2011 having reached 149.9 billion rubles. The key driver was the growth in returns on loans and financial leasing due to increase in volume of such transactions.

Interest expenses grew by 22.8 billion rubles to 90.4 billion rubles, with interest expenses on funds raised from credit institutions and the Bank of Russia increasing by 10.0 billion rubles due to the rise in average amounts of borrowings and borrowing rates as compared to the same period of 2011. Expenses on amounts due to customers and the Russian Government also increased, as well as expenses on the securities issued (by 5.8 and 6.9 billion rubles respectively).

For the nine months 2012 the net income from transactions on investment financial assets available for sale diminished as compared to the same period of 2011 by 13.7 billion rubles to (-)0.6 billion rubles.

As compared to the 9 months of 2011 the gains less losses on transactions in foreign currency increased as by 17.2 billion rubles to 12.7 billion rubles.

Non-interest expenses in the accounting period increased by 5.7 billion rubles to 30.3 billion rubles. Other operating expenses growth by 3.1 billion rubles also had a significant impact.

The amount of allowances for impairment and provisions created for the nine months of 2012 decreased by 8.3 billion rubles in comparison with the same period of 2011 and amounted 21.0 billion rubles.