In the first half of 2016 Rosgosstrakh Bank generated IFRS profit of around Rub 156.6 mln against a loss of Rub 1,583 mln a year ago. These numbers were disclosed in the lending institution's consolidated financial statement.
"Primary profit drivers were a rise in net interest income, the slower pace of the formation of provisions (by over 30% y-o-y) and the ability to meet the target for operating expenses," Rosgosstrakh Bank said in a press release.
Interest income amounted to Rub 7 bln (up 32% y-o-y) on the back of a rise in interest income derived from securities trading. Net interest income before provisions equaled Rub 2.3 bln compared with Rub 700 mln a year ago. The bank's expenses incurred to form provisions against impairment of the credit portfolio slid 33.3% to Rub 1.7 bln. The lender's 1H16 operating expenses also dropped (2.4% to Rub 1.94 bln).
As the bank said in the press release, the group's capital has increased 7.3% YTD to Rub 15.8 bln. "As of June 30, 2016 the group complied with all external capital requirements. The bank's capital adequacy ratio (under Basel I) rose to 12.55% (11.08% as of year-start 2016)," the bank emphasized.
As of June 30, 2016 the bank's assets reached Rub 124.6 bln, the credit portfolio (net of impairment provisions) amounted to Rub 24.7 bln. The bank noted that the credit portfolio's rate of return is high (16.3% and 15% in 2015). The securities portfolio has expanded 12.1% YTD to Rub 79.6 bln.
The group's obligations totaled Rub 108.8 bln in January-June 2016, while customers' funds came to Rub 74 bln. The money drawn from households has increased 7.2% YTD to Rub 64.6 bln.