OREANDA-NEWS. April 15, 2013. Sviaz-Bank has published its consolidated report and financial statements for 2012 prepared in accordance with the International Accounting Standards (IAS) and confirmed by Ernst & Young LLC, the Bank’s independent auditor.

As of January 1, 2013, the Bank’s net assets had risen by 19.2% to 262.6 billion rubles. The Bank’s expanding lending operations are the principal driving force behind this growth. The Bank’s loan portfolio had grown by 24.2% in 2012 to 156.5 billion rubles on January 1, 2013. Commercial lending rose by 13.4% during 2012, reaching 130.8 billion rubles on the reporting date. Improvements in the Bank’s line of loan products and services to individuals, backed up by its sprawling network of branches, enabled the Bank to increase its portfolio of loans issued to individuals. The total amount of loans to individuals had more than doubled to 30.5 billion rubles since January 1, 2012.

The Bank’s portfolio of securities, most of them federal and subfederal papers and corporate mortgage-backed securities, had grown by 14.6% to 67.9 billion rubles.

The quality of the Bank’s assets has improved as well: the ratio of loan loss provisions for debt on the loan portfolio dropped to 4.8% from 5.2% with the result that the credit risk ratio on the financial assets as a whole dipped to 3.3% from 3.4%.

The funds deposited with the Bank by individuals and corporate customers are still the principal source of finance for its active operations. As of January 1, 2013, the Bank had 156.9 billion rubles in customer funds on deposit, or a 10.0% increase over the reporting period.

Growth in the value of transactions has led to a significant increase in the Bank’s principal income generating sources. In 2012, the Bank earned 7,585 million rubles in net interest income, 20.4% more than in did in 2011.

The Bank’s noninterest expenses had grown by 4% over the year.

The total aggregate income (net financial result) in 2012 reached 1,615 million rubles.

As of January 1, 2013, the Bank’s IAS equity capital amounted to 42.7 billion rubles and the capital adequacy ratio required under the Basel Agreement reached 20.2%, a sign that the Bank has a high capitalization ratio that enables it to fulfill its plans for developing all types of transactions and remain a strategically important subsidiary of the Vnesheconombank Group.

In 2013, the Bank will continue implementing its plans for expanding active operations, diversifying its customer base, developing and offering new products and special technologies for all groups of customers, using remote banking for mass-scale transactions, and developing its network of branches, among others.