OREANDA-NEWS. Promsvyazbank (PSB) has published audited by Pricewaterhouse Coopers consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as at 31 December 2013.

Income Statement Highlights:
* Net profit for 2013 was RUB 4.0 bn compared to RUB 8.2 bn for  2012.
* Net interest income increased to RUB 29.6 bn, up 14.7% from RUB 25.8 bn for 2012.
* Net interest margin for Q4 2013 remained flat to Q3 2013 result at 4.8%. However due to margin decrease in 1H 2013 net interest margin for 2013 declined to 4.6% compared to 4.7% for 2012.  
* Net fee and commission income for 2013 increased by 21.0% to RUB 9.1 bn, compared to RUB 7.6 bn for 2012, making 22.4% share in operating income in comparison with 22.0% in 2012.
* Net gain on financial instruments at fair value and net foreign exchange gain for 2013 decreased to RUB 1.0 bn compared to RUB 1.9 bn for 2012 mainly due to financial markets volatility in Q4 2013.  
* Operating income for 2013 increased by 18.9% to RUB 40.8 bn, compared to RUB 34.3 bn for 2012.
* General and administrative expenses for 2013 increased only by 5.7% to RUB 21.2 bn, compared to RUB 20.0 bn for 2012, lower than operating income growth. Cost-to-income ratio improved to 51.9% from 58.4% for 2012.
* Provision for loan impairment for 2013 amounted to RUB 13.9 bn, which corresponds to the cost of risk (the ratio of provision for loan impairment to average gross loan portfolio for the period) at 270 bp, compared with 95 bp for 2012.  

Balance Sheet Highlights:
* Total assets as at 31 December 2013 reached RUB 739 bn, up 7.1% from 2012 year-end, loans to customers being the key driver for this growth.
* Net loans to customers increased by 18.1% to RUB 545 bn, compared to RUB 462 bn at 2012 year-end. Share of SME and Retail net loans for 2013 increased from 26.8% to 27.1%.
* Share of non-performing loans (NPL, 90+ days overdue) in total gross loans declined to 3.6% from 4.3% at 2012 year-end, with the coverage ratio of 125% at the end of 2013 (2012: 110%). Non-performing loans decrease was due to write-offs and sales of NPLs in the amount of RUB 7.8 bn and RUB 5.5 bn, respectively.
* Current accounts and deposits from customers increased by 9.6% to RUB 488 bn, compared to RUB 445 bn at the end of 2012, with retail deposits increasing by 17.6% for 2013.
* Loan to deposit ratio equaled to 112% as at 31 December (31 December 2012: 104%) and remained in Bank's targeted range of below 120%.
* Shareholder's equity for 2013 increased by 5.4% to RUB 66 bn, driven by net profit for the period.
* Basel I total capital adequacy ratio accounted to 14.4% as at 31 December 2013 (31 December 2012: 16.0%). Basel I Tier 1 capital adequacy ratio decreased by 90 bp in comparison with 2012 to 9.4%.