OREANDA-NEWS. According to 1H2014 IFRS consolidated financial statements, the assets of Petrocommerce Banking Group increased by 8% to RUB 259.2 bln.

The loan book was one of the key drivers behind the asset growth. During the first six months of 2014, it increased by 4%, or by RUB 7 bln, to RUB 182.8 bln. It accounts for 62% of total assets of the Banking Group. As at 30.06.2014, the SME loan portfolio went up by 30% to RUB 12.7 bln; the retail loan portfolio - by 12% to RUB 33.8 bln; the corporate loan portfolio - by 5% to RUB 136.3 bln. The Bank continues to follow a conservative approach to liquidity management by maintaining the level of liquidity reserves at approximately 30% of total assets.

The core sources of funding base expansion were customer accounts and deposits, which grew by 7% to RUB 149.4 bln, first and foremost, due to corporate customer funding. As at 30.06.2014, corporate customer funding constituted RUB 78.8 bln, up by 24% as compared with year-start; retail customer funding - RUB 70.6 bln, down by 6%, which is in line with the development trend of the retail deposit market.

Interest income grew by 20% to RUB 11.8 bln; net interest income - by 13% to RUB 4.7 bln; fee and commission income - by 17% to RUB 1.7 bln (yoy). A positive trend in interest income was underpinned by the focus of the Bank's credit policy on segments generating high margins: income from customer lending increased by 15% to RUB 10.2 bln during the first six months of 2014.

The measures aimed at boosting business efficiency undertaken by the Bank allowed to cut operating expenses by 8% to RUB 3.8 bln (yoy). Provisions for loan impairment amounted to RUB 1.8 bln vs. RUB 3.5 bln (yoy). Profit before provisions was RUB 1.9 bln. Net profit of the Banking Group was RUB 31 mln for 1H2014 (the loss for 1H2013 amounted to RUB 1.6 bln).