OREANDA-NEWS. According to the preliminary balance sheet under the Russian Accounting Standards (RAS) net profit of PSB for 9M 2013 amounted to RUB4.8 billion, compared with RUB8.3 billion for the same period last year. For 9M 2013 operating income (profit before impairment charge, operating expenses and tax expenses) grew by 7% to RUB36.2 billion vs. the same period last year; operating expenses decreased by 5% to RUB23.6 billion. The key driver for the profit decrease in Q3 2013 was the additional loan impairment charge in the amount of RUB2.3 billion as a safety cushion against the uncertain macroeconomic environment.

As at October 1, 2013, PSB assets totaled RUB727 billion, up 6% from January 1, 2013. The liquidity ratios remained at a high level reflecting PSB policy aimed at maintaining a higher liquidity cushion during uncertainty in global financial markets. So, as at October 1, 2013, CBR N2 and N3 liquidity ratios were 48% and 69%, exceeding the minimum requirements of 15% and 50% respectively.

Corporate gross loan portfolio reached RUB436 billion, up 5% from January 1, 2013 and retail gross loan portfolio grew by 17% to RUB71 billion for the same period. Total net loan portfolio (after provisions and excluding interbank loans) increased by 6% compared to January 1, 2013.

PSB continues to maintain a stable share of customer accounts in its liabilities (October 1, 2013: 78%; 2012: 79%). As at October 1, 2013, the ratio of net loans to total customer accounts was 101% (2012: 101%).
For 9M 2013 total customer accounts and deposits (retail and corporate) increased by 3% from January 1, 2013. Corporate customer deposits decreased by 2%, retail customer deposits grew by 13% from the year end. The share of demand deposits in total customer accounts grew from 28% as at January 1, 2013 to 31% as at October 1, 2013.

PSB capital (“own funds” as defined in the RAS) as at October 1, 2013 amounted to RUB92 billion, up 20% from January 1, 2013. CBR N1 capital adequacy ratio reached 12.1% level. PSB already meets Basel III capital adequacy ratio requirements which will come into effect only from January 1, 2014. As at October 1, 2013, core and Tier 1 capital, were 7.1% and 7.5% accordingly.

PSB Chief Financial Officer Vladislav Khokhlov comments on the published results: “As a response to the global changes in macroeconomics and financial markets, PSB continues to enhance its stability in liquidity management and capitalization. Besides, PSB current financial results deliver decent profit before impairment charge (up 37% to the 9M 2012). Increase in the cost of risk is in the general market trend.”

For reference: RAS balance sheet data largely reflects the results of PSB operations in 9M 2013. However, more detailed information about PSB 9M 2013 results will be disclosed in IFRS financial statements to be released in December 2013 and to be followed by a conference-call with investors and analysts.