UniCredit Bank Financial Results for 9 months of 2015: net profit of RUB 11.21 bn
- Solid contribution of all business segments to sustainable financial result
- Solid Balance Sheet’s structure
- Sustainable loans and deposits’ growth
AO UniCredit Bank’s consolidated financial statements for the nine-month period ended 30 September 2015 prepared in accordance with International Financial Reporting Standards:
- Total assets: RUB 1 360 billion (+32.7% Y/Y)
- Total Equity: RUB 159.92 billion (+10.1% Y/Y)
- Loans to customers: RUB 838.22 billion (+18.0% Y/Y)
- Total customers deposits: RUB 931.08 billion (+59.3% Y/Y)
- Net Profit: RUB 11.21 billion (-26.5% Y/Y)
Mikhail Alekseev, CEO of UniCredit Bank, commented: "We continue to follow our strategy of growth, closely watching our costs and asset quality. It is important for us that the operating performance figures are at a good level, credit and deposit portfolios also increased. All of that once again confirms that even in difficult times from an economic point of view we remain stable and profitable financial institution and successfully support business of our clients”.
AO UniCredit Bank in the nine-month period ended 30 September kept its position as the leading international bank in Russia with total assets amounting to RUB 1 360 billion (+32.7%, +RUB 335.17 bn Y/Y). The Bank also keeps its profitability despite negative trends on the capital markets during the summer and maintains solid quality of its loan portfolio.
For the nine months of 2015 the Bank achieved a net profit of RUB 11.21 billion and generated a strong return on equity of 9.4%. All business segments significantly contributed to the positive results for the reporting period.
The operating profit for the three quarters of the year demonstrated sustainable growth up to RUB 35.71 billion (+11.5% Y/Y). Net interest income recorded a +15.8% growth (RUB 29.84 bn, +RUB 4.07 bn Y/Y). Net fee and commission income amounted to RUB 2.97 billion decreased by -39.9% Y/Y as a result of a more conservative approach on retail products exposure and additional commission expenses related to Group financial guarantees.
The tight cost control remains one of the key priorities for the Bank. The operating expenses comprised RUB 11.16 billion (+13.58% Y/Y). Nevertheless, cost/income ratio stays at the excellent level of 31.3% which remains among the best results within the Russian banking system.
Total equity increased up to RUB 159.92 billion (+10.1%, +RUB 14.66 bn Y/Y). The Bank keeps a capital adequacy ratio of 12.90% well above the regulatory requirements.
Gross loans to customers amounted to RUB 867.78 billion (+18.9% Y/Y). Net loans to customers amounted to RUB 838.22 billion (+18.0% Y/Y). 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 729 billion (+29.5%, +RUB 165.94 bn Y/Y, +29.8% Y/Y net of lease receivables). Retail portfolio (including SME) amounted to RUB 138.78 billion. The quality of loan portfolio remains the main focus for UniCredit Bank. As of the end of the nine months of 2015 the share of impaired loans in total gross loan portfolio stood at 6.27% with a trend which is reflecting theeconomic and macro scenario but with an overall performance better than the sector.
In the nine months of 2015, total customers deposits increased significantly by 59.3% Y/Y up to RUB 931.08 billion (+RUB 346.76 bn Y/Y), with total corporate funds increased to RUB 739.57 billion (+58.5%, +RUB 272.89 bn Y/Y), and retail funds grew as well to RUB 191.51 billion (+62.8%, +RUB 73.88 bn Y/Y). The loan/deposits ratio as of 30 September 2015 was 86.7% confirming the Bank’s sound liquidity position.
UniCredit Bank Russia serves almost 1,700,000 customers as well as over 28,000 small, medium and large enterprises through its network of 102 outlets (including the Representative Office in Minsk).