B&N Bank Issues IFRS Consolidated Financial Statements for 2013
OREANDA-NEWS. April 14, 2014. B&N Bank has issued IFRS Consolidated Financial Statements for the year ended December 31, 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) substantially increased its assets, equity and operating income.
As of January 1, 2014 B&N Bank ranked #33 in "Top-200 Russian banks by net assets”, #34 in “Top-200 Russian banks by equity", #20 in “Top banks by retail deposits” and #3 in “Top-100 most reliable Russian banks” according to business magazine “Profile”. Moreover, as of February 1, 2014 B&N Bank is included into Top-30 Russian banks according to monthly data published by the Central Bank of the Russian Federation (CBR).
Total assets of the Group* increased by 29% and amounted to RUB 217.4bn (RUB 169.1bn in 2012). Basically, growth in assets was driven by 59% increase in the loan book to RUB 136.3bn (RUB 85.6bn in 2012). Corporate loans amounted to RUB 118.6bn (+55%), representing the major portion of the total loan book. According to its development strategy, in 2013 B&N Bank strengthened its positions in high-margin segments such as retail business. As a result, the retail loan portfolio increased by 92% to RUB 17.7bn (vs RUB 9.2bn in 2012).
As of January 1, 2014 NPL90+ ratio stood below the market average at 3.4%. Provisioning coverage ratio (provisions/NPL90+) was about 109%.
Total liabilities of the Group grew by 27% and totaled RUB 199.2bn (RUB 156.7bn as at 2012 year-end). Growth in liabilities was driven by the increase in customer accounts up to RUB 172bn (+26%) and debt securities issued up to RUB 13bn (+156%) due to placement of BO-02, BO-03 exchange bonds amounting to RUB 5bn and Euro-Commercial Paper (ECP) of series 03, 04, 05 amounting to US\\$93.8mln under US\\$300mln ECP Programme.
Retail deposits increased fr om RUB 85.5bn to RUB 106bn (+24%) and represented the core source of funding. However, dependence on the retail deposits is mitigated by the upward trend in corporate balances, which rose from RUB 50.9bn to RUB 66bn (+30%), and capital market borrowings.
Tier 1 capital rose from RUB 12.5bn to RUB 18.2bn (+46%) due to several capital injections amounting to RUB 5bn and current revenues. Tier 1 capital ratio per Basel II approach stood at 8.5% (Tier 2 CAR – 12.1%), which is well above the minimum regulatory requirements and ensures a healthy capitalization. In 1H2014 the Bank plans to increase its capital by RUB 4bn (additional share issue in favor of the company owned by Mikhail Gutseriev – a close relative of Mr. Shishkhanov and founder of B&N Bank). After the additional share issue Mikail Shishkhanov will hold about 77.7% of the Bank’s shares and Mikhail Gutseriev – about 20.6%.
Interest income increased by 34% and amounted to RUB 18.4bn. Due to substantial increase in interest income the net interest income (before provisions) increased from RUB 4.3bn to RUB 6.1bn. At the same time, net non-interest income rose from RUB 3.8bn to RUB 6bn (+57%), primarily due to commission income and gains on FOREX operations. Net profit of the Group amounted to RUB 753.6mln and fully complied with the target figures for 2013.
Current liquidity reserves remain traditionally high. CBR prudential ratios governing liquidity are well above the minimum regulatory requirements. Highly liquid instruments as of December 31, 2013 accounted for 13% of the total assets.
As of January 1, 2014 the Bank’s branch network covered 38 regions of the Russian Federation and accounted for 192 offices: 11 branches, 101 sub-branches, 73 operational offices, 6 operating cash desks and 1 representative office. In the second half of 2013 the Bank opened 29 new offices in Moscow, Saint-Petersburg, Kazan, Nizhny Novgorod, Kaliningrad, Perm, Novosibirsk, Penza, Samara, Stavropol, Orenburg, Tomsk and Vladimir.
During the reporting period B&N Bank demonstrated sound balance sheet figures and sustainable profitability. In 2014 B&N Bank plans to further diversify its business and strengthen its market positions in the key strategic areas. Other top priorities for 2014 include maintenance of the healthy asset quality and higher level of the operating efficiency.
* The Group consists of the following companies consolidated in the financial statements: B&N Bank (Joint-Stock Company), LLC “Standard Development”, B&N FINANCE LIMITED, Closed-end Investment Fund rental “Finam-Kapitalnie Vlozheniya”