OREANDA-NEWS. October 04, 2013. B&N Bank has issued Interim Condensed Consolidated Financial Statements (IFRS) for the 6 months ended June 30, 2013 reflecting financial position of the Bank and its affiliates.

During the reporting period B&N Bank (ranks among Top-40 Russian banks in terms of assets and equity) demonstrated a positive trend in its key financial highlights. As of July 1, 2013 the Bank ranked 35 among “Top-200 Russian Banks by Net Assets”, 37 among “Top-200 Russian Banks by Equity”, 20 among “Top Banks by Retail Deposits” and 3 among “Top-100 Most Reliable Russian Banks” according to business magazine “Profile”.  Moreover, as of August 1, 2013 B&N Bank is included into Top-30 Russian banks according to monthly data published by the Central Bank of the Russian Federation.

Total assets of the Bank increased by 21% and amounted to RUB 205bn (RUB 169.1bn as at the end of 2012). Growth in assets was driven by increase in the trading securities portfolio to RUB 24.6bn (+37%) and the loan book to RUB 114.8bn (+34%). Corporate loans, which form the major part of the loan portfolio, increased by 34% and amounted to RUB 102.2bn (after provisions). In line with its long-term strategy, elaborated jointly with the major international consulting company, B&N Bank noticeably increased its retail lending resulting in 37% growth in the retail loan book up to RUB 12.6bn.

Loan book quality continued to improve. As of July 1, 2013 NPL ratio (non-performing loans overdue more than 90 days) declined to 2.9% from 3.3% as of the end of 2012. In 1H2013 the Bank also managed to reduce the industry loan concentration on construction/real estate sectors to 19% of the total loan book from 27% as at the end of 2012 that indicated a good level of credit risk management.  

Total liabilities as of June 30, 2013 grew by 20% and totaled RUB 188.4bn (RUB 156.7bn in 2012). Basically, liability growth derived from the increase in customer accounts up to RUB 158.6bn (+16%) due to funds of individuals (+16%) and corporate customers (+17%). Furthermore, debt securities issued increased by 36% due to placement of 3 and 4 series of Euro-Commercial Paper totaling US\\$71.8mln.

Tier 1 capital grew to RUB 16.6bn (+33%) due to several capital injections amounting to RUB 4bn and current revenues. Tier 1 capital ratio per Basel 1 approach stood at 8.6% (Tier 2 CAR – 12.1%), which is well above the minimum regulatory requirements and ensures a healthy capitalization.

Interest income for the 6 months of 2013 increased by 38% and amounted to RUB 8.4bn.  At the same time, net interest income (before provisions) increased to RUB 2.6bn (+34%). Net non-interest income also rose to RUB 2.3bn (+53%), mainly due to commission income and gains on security operations. B&N Bank’s net profit for the 6 months of 2013 amounted to RUB 140.2mln (+19%). Positive dynamics of profitability derives from the increased income on  B&N Bank’s core operations in line with the adopted development strategy.

Current liquidity reserves remain traditionally high. CBR prudential ratios governing liquidity are well above the minimum regulatory requirements: N2 ‘Instant Liquidity’ – 72.77% at min.15%; N3 ‘Current Liquidity’ – 111.05% at min. 50%; N4 ‘Long-Term Liquidity’– 54.17% at max. 120%.

As of July 1, 2013 the Bank’s branch network covered 37 regions of the Russian Federation and accounted for 153 offices: 25 branches, 100 sub-branches in Moscow and regions, 20 operational offices, 6 operating cash desks and 2 representative offices. In 1H2013 the Bank opened 20 new offices in Moscow, St. Petersburg, Nizhny Novgorod, Kazan, Yekaterinburg,  Chelyabinsk, Novosibirsk, Tyumen, Irkutsk, Samara, Saransk, Kemerovo, Krasnodar, Ioshkar Ola and other cities. Moreover, the Bank opened a representative office in London to support relationships with foreign investors and promote the Bank’s image in the international market.

During the reporting period B&N Bank demonstrated good balance sheet figures and successful implementation of its strategic initiatives. In the latter half of 2013 B&N Bank plans to diversify its business, strengthen market positions in the focus areas and increase its revenues.