B&N Bank generated Rub 109 mln net profit under IFRS in January-June 2011 and the bank reported a Rub 761 mln loss a year ago, the lending institution said in a statement.
The bank’s profitability jumped on the back of rising efficiency of operations amid an increase in net interest margin and commission, and the restoration of reserves. Meanwhile, provisioning remains adequate to the bank’s risks (the provision rate stands at around 7%).
In accordance with the bank’s unaudited report, in January-June 2011 the lender’s aggregate reserves jumped 6% to Rub 104.2 bln (Rub 98.7 bln as of year-end 2010). An increase in the bank’s assets was mainly driven by a spike in the credit portfolio to Rub 63 bln (+12%) and inter-bank loans placed to Rub 14.4 bln (+36%). The credit portfolio jumped on the back of corporate loans that climbed 15% to Rub 56.9 bln. Retail loans dropped 9%, equaling Rub 6.1 bln.
As of July 1, 2011 the bank’s aggregate liabilities totaled Rub 99.2 bln, up 6% (Rub 93.6 as of year-end 2010). Customer funds rose 4% to Rub 87.3 bln. The main source of the resource base is still money of households that jumped from Rub 60 bln to Rub 64.9 bln (up 8%). The bank’s interest income amounted to Rub 4.8 bln, rising 8% against January-June 2010.
B&N Bank was registered in November 1993. Its beneficial owner is nephew of famous entrepreneur Mikhail Gutseriev, Mikail Shishkhanov (controls 97.079% of the bank’s shares). Its core areas of business are corporate lending and private deposits. The bank is fairly aggressive on the FX market as well.
