Net aggregate profit generated by VTB North-West in January-June 2010 under IFRS exceeded the amount earned during the entire 2009, reaching Rub 3.6 bln, the lending institution said in its financial statement for the first half of 2010.
Specifically, compared to the year-earlier period the lenders net interest income grew 1.5%, net operating income jumped 37.6% and operating expenses were cut by 4.9%. Corporate loans issued rose 3.5% or Rub 6 bln to Rub 179.2 bln. “An increase in corporate lending allowed the bank, despite falling rates… to bump up net interest income," the bank noted in its press release.
Allowances for possible corporate loan losses grew by Rub 1.6 bln. “At the same time the better quality of the banks credit portfolio was underscored by the slower pace of allocations to allowances," the bank said in a press release. As for the corporate portfolio, the coverage ratio for non-performing loans is equal to 1.4. As of July 1, 2010 the average rate of allowances stood at 9.3% (8.7% at the beginning of the year).
The cost-income ratio (CIR) in January-June 2010 fell to 29.1% taking into account allowances and 23.1% excluding allowances. Return on assets (ROA) came in at 3.4% on an annualized basis, while return on equity (ROE) equaled 25%. As of July 1, 2010 the capital adequacy ratio (CAR), calculated on the basis of the recommendations given by the Basel Committee on Banking Supervision, stood at 16.2% (15.1% YTD). “Financial showings of the first half…turned out to be one of the strongest in the banks history," the bank noted in the press release.
VTB North-West dates back from 1990. Currently the lender is part of VTB Group and specializes in corporate operations in the North-West Federal District.
Based on Banki.ru data, as of August 1, 2010 the lenders assets stood at Rub 240.06 bln (19th place in Russia), capital (calculated in line with CBR requirements) totaled Rub 41.15 bln, including the Rub 10.86 bln subordinated loan, the credit portfolio amounted to Rub 171.65 bln and obligations to households came to Rub 3.67 bln.