UniCredit Bank Financial Results for the first half of 2015: net profit of RUB 7.84 bn
- Solid Balance Sheet’s structure
- Solid result’s contribution from all business segments
- Sustainable loans and deposits’ growth
AO UniCredit Bank’s consolidated financial statements for the six-month period ended 30 June 2015 prepared in accordance with International Financial Reporting Standards:
- Total assets: RUB 1 235.55 billion (+31.2% Y/Y)
- Total Equity: RUB 154.7 billion (+10.1% Y/Y)
- Net loans to customers: RUB 795.02 billion (+27.7% Y/Y)
- Total customers deposits: RUB 809.73 billion (+55.1% Y/Y)
Mikhail Alekseev, CEO of UniCredit Bank, commented: “In the first half of this year UniCredit Bank achieved the planned level of performance in terms of revenue and effectiveness of its business despite quite complicated economic context. Thanks to a well-balanced business model as well as high quality risk management system the Bank keeps position among the largest banks in Russia by assets at the same time remaining one of the best on the market by assets quality. Sustainable profitability, cost control as well as high quality of the loan portfolio will be the top priorities for us for the second part of the year”.
AO UniCredit Bank in the first half of 2015 successfully kept its position as the leading international bank in Russia with total assets amounting to RUB 1 235.55 billion (+31.2%, +RUB 294.05 bn Y/Y). Business fundamentals continue to remain strong with very comfortable liquidity ratios and very solid capital adequacy ratio well above the regulatory limits.
The Bank has achieved the net profit of RUB 7.84 billion and generated a strong return on equity of 10.2% with a solid contribution from all business segments.
First half 2015 reported a remarkable operating profit growth (+16.4% Y/Y).
Net interest income recorded a +22% growth (RUB 19.87 billion, +RUB 3.58 billion Y/Y) thanks to the efficient and flexible approach to re-pricing that supports good commercial performance both in loans and deposits portfolio. Gains on financial assets and liabilities held for trading reported a result of RUB 3.39 billion on the back of a more positive capital markets scenario. Net fee and commission income amounted to RUB 1.87 billion decreased by -44.2% Y/Y as a result of a more conservative approach on retail products exposure and additional commission expenses related to Group financial guarantees.
During the first six months of 2015 the Bank continued to maintain tight cost control. The operating expenses of the Bank comprised RUB 7.32 billion (+11.9% Y/Y). Nevertheless, cost/income ratio decreased to the excellent level of 30.4% which remains among the best results within the Russian banking system.
Total equity increased up to RUB 154.7 billion (+10.1%, +RUB 14.17 bn Y/Y). At the end of the first quarter of 2015 the UniCredit Bank's Tier II capital has been increased by USD 480.9 mln according to the decision taken by the Bank's sole shareholder UniCredit Bank Austria. Therefore the bank keeps a capital adequacy ratio of 13.41% above the regulatory requirement.
Gross loans to customers amounted to RUB 820.6 billion (+28% Y/Y, +6.9% if net of FX revaluation effect). Net loans to customers amounted to RUB 795.02 (+27.7% Y/Y, +5.9% if net of FX revaluation effect). The main contribution to the growth of the loan portfolio came from the Corporate and Investment banking segment (CIB). Total gross loans to corporate customers (including reverse repurchase agreements and lease receivables) increased significantly up to RUB 678.88 billion (+42.9%, +RUB 203.84 billion Y/Y, +43.3% Y/Y net of lease receivables). Retail portfolio (including SME) amounted to RUB 141.74 billion. The quality of loan portfolio remains the main focus for UniCredit Bank. As of the end of the first half of 2015 the share of impaired loans in total gross loan portfolio stood at 5.28%.
In the first half of 2015, total customers deposits increased significantly by 55.1% Y/Y up to RUB 809.73 billion (+RUB 287.54 bn Y/Y), with total corporate funds increased to RUB 644.85 billion (+56.8%, +RUB 233.56 bn Y/Y), and retail funds grew as well to RUB 164.88 billion (+48.7%, +RUB 54 bn Y/Y). The loan/deposits ratio as of 30 June 2015 was 93.4% confirming the Bank’s sound liquidity position.
UniCredit Bank Russia serves over 1,650,000 customers as well as over 28,000 small, medium and large enterprises through its network of 102 outlets (including the Representative Office in Minsk).