OJSC Bank VTB North-West, the results of the first quarter of 2009 under IFRS. The total net profit of the bank during this period reached 1.37 billion rubles, which is 26.7% higher than the first quarter of 2008.
A substantial increase in aggregate net profits, on the basis of the quarter due to the following main factors:
• Interest income on loans to corporate customers increased by 31.6%;
• Net interest income increased by 6.9%;
• allocations to reserves for possible losses amounted to 2.27 billion rubles, exceeding that of the first quarter of 2008 to 171.2%, or 1.43 billion rubles;
• Profit from operations with foreign currency and securities (including repurchase its own debt) amounted to 0.7 billion rubles;
• Operating costs reduced by 22.3% compared to the first quarter of 2008.
The dynamics of assets and liabilities of the bank in the first quarter of this year, determined by two divergent trends: the traditional seasonal reduction in short-term non-financial resources of clients on the one hand, and an increase in ruble equivalent of balance, denominated in foreign currency, for the sharp rise in exchange rates observed since the beginning of the year.
Reduce balances on the accounts and short-term deposits of corporate clients, taking into account the funds raised through the issuance of bank notes, was in the first quarter of 2009, 13.2 billion rubles (-12.3%). Nevertheless, in comparison with the first quarter of 2008, balances of corporate clients, taking into account the issuance of promissory notes increased to 19.6 billion rubles (26.5%).
Seasonal decline in balances in the accounts of corporate clients in large part led to the dynamics of the funds placed in banks (correspondent accounts and issued short-term interbank loans). In the first quarter of 2009, funds placed in other banks decreased by 28.2 billion rubles (-46.3%).
However, despite the seasonal outflow of short-term resources, in the first quarter of this year, the bank continued to support the real sector of the economy and increase its lending to corporate customers. The portfolio of loans granted to legal persons before deduction of reserves for possible losses, rose from the beginning of the year at 7.6 billion rubles (5.2%).
At the same time, the bank has followed a consistent decline in retail operations, which began in 2008. Loans to individuals, decreased from the beginning of the year at 0.5 billion rubles (-13.4%), while retail customers - to 4.5 billion rubles (-23.9%).
In the current economic situation, the bank pays particular attention to quality control formed the loan portfolio using a consistent conservative methodology for assessing credit risks and maintaining reserves at a level sufficient to cover potential losses.
Average rate reserve portfolio of corporate loans has reached the first quarter of 2009, 6.2% (at the beginning of the year - 5.1%). The share of overdue debt in the portfolio of corporate loans at the Bank of 01.04.2009 amounted to 3,1% (at beginning of year - 2,5%), which is below the average for the banking system as a whole. Coverage ratio of overdue debts at the expense of the total provision is maintained at 2.0.
In the first quarter of 2009, the bank took advantage of favorable conditions prevailing in the international debt markets, and has made a partial redemption of its own subordinated Eurobonds at a price substantially below face value. Revenue from foreclosure of their own commitments amounted to 0.5 billion rubles. In addition, a significant amount of revenue (0.2 billion rubles) was received from transactions in foreign currencies, especially the popular client in January 2009.
events on regional and country focus, as well as to optimize the organizational structure and size, conducted in 2008, enabled the Bank, starting in 2009, to reduce transaction costs. The savings of operating expenses during the reporting period amounted to 0.3 billion rubles (-22.3% compared with the first quarter of 2008).
As a result, the influence of all factors listed above, total net profit of the bank for the first quarter of 2009 reached 1.4 billion rubles, an increase of 26.7% compared with that of 2008.
Return on assets (ROA) for the first quarter of 2009 was annualized 2.5% (2008 - 2.3%), and the profitability of own funds (ROE) - 21,1% (2008 - 18 , 8%). Rate the adequacy of own funds, calculated on the basis of the recommendations of the Basel Committee on Banking Supervision, in the first quarter of 2009 equal to 16,3% (2008 - 16,0%).
consolidation of net profit
Name
1 kv.2009 (thousand rubles.)
1 kv.2008 (thousand rubles.)
Increase /(decrease) 1 kv.2009 - 1 kv.2008 (%)
Net interest income
3 200 550
2 994 703
6,9%
(Creation) /rehabilitation of the reserve for losses and depreciation
-2 270 925
-837 389
171,2%
Net interest income after the formation of reserves for possible losses and depreciation
Net profit of Bank VTB North-West in the 1 quarter of 2009 under IFRS increased by 26.7% to 1.37 billion rubles
OJSC Bank VTB North-West, the results of the first quarter of 2009 under IFRS. The total net profit of the bank during this period reached 1.37 billion rubles, which is 26.7% higher than the first quarter of 2008.
A substantial increase in aggregate net profits, on the basis of the quarter due to the following main factors:
• Interest income on loans to corporate customers increased by 31.6%;
• Net interest income increased by 6.9%;
• allocations to reserves for possible losses amounted to 2.27 billion rubles, exceeding that of the first quarter of 2008 to 171.2%, or 1.43 billion rubles;
• Profit from operations with foreign currency and securities (including repurchase its own debt) amounted to 0.7 billion rubles;
• Operating costs reduced by 22.3% compared to the first quarter of 2008.
The dynamics of assets and liabilities of the bank in the first quarter of this year, determined by two divergent trends: the traditional seasonal reduction in short-term non-financial resources of clients on the one hand, and an increase in ruble equivalent of balance, denominated in foreign currency, for the sharp rise in exchange rates observed since the beginning of the year.
Reduce balances on the accounts and short-term deposits of corporate clients, taking into account the funds raised through the issuance of bank notes, was in the first quarter of 2009, 13.2 billion rubles (-12.3%). Nevertheless, in comparison with the first quarter of 2008, balances of corporate clients, taking into account the issuance of promissory notes increased to 19.6 billion rubles (26.5%).
Seasonal decline in balances in the accounts of corporate clients in large part led to the dynamics of the funds placed in banks (correspondent accounts and issued short-term interbank loans). In the first quarter of 2009, funds placed in other banks decreased by 28.2 billion rubles (-46.3%).
However, despite the seasonal outflow of short-term resources, in the first quarter of this year, the bank continued to support the real sector of the economy and increase its lending to corporate customers. The portfolio of loans granted to legal persons before deduction of reserves for possible losses, rose from the beginning of the year at 7.6 billion rubles (5.2%).
At the same time, the bank has followed a consistent decline in retail operations, which began in 2008. Loans to individuals, decreased from the beginning of the year at 0.5 billion rubles (-13.4%), while retail customers - to 4.5 billion rubles (-23.9%).
In the current economic situation, the bank pays particular attention to quality control formed the loan portfolio using a consistent conservative methodology for assessing credit risks and maintaining reserves at a level sufficient to cover potential losses.
Average rate reserve portfolio of corporate loans has reached the first quarter of 2009, 6.2% (at the beginning of the year - 5.1%). The share of overdue debt in the portfolio of corporate loans at the Bank of 01.04.2009 amounted to 3,1% (at beginning of year - 2,5%), which is below the average for the banking system as a whole. Coverage ratio of overdue debts at the expense of the total provision is maintained at 2.0.
In the first quarter of 2009, the bank took advantage of favorable conditions prevailing in the international debt markets, and has made a partial redemption of its own subordinated Eurobonds at a price substantially below face value. Revenue from foreclosure of their own commitments amounted to 0.5 billion rubles. In addition, a significant amount of revenue (0.2 billion rubles) was received from transactions in foreign currencies, especially the popular client in January 2009.
events on regional and country focus, as well as to optimize the organizational structure and size, conducted in 2008, enabled the Bank, starting in 2009, to reduce transaction costs. The savings of operating expenses during the reporting period amounted to 0.3 billion rubles (-22.3% compared with the first quarter of 2008).
As a result, the influence of all factors listed above, total net profit of the bank for the first quarter of 2009 reached 1.4 billion rubles, an increase of 26.7% compared with that of 2008.
Return on assets (ROA) for the first quarter of 2009 was annualized 2.5% (2008 - 2.3%), and the profitability of own funds (ROE) - 21,1% (2008 - 18 , 8%). Rate the adequacy of own funds, calculated on the basis of the recommendations of the Basel Committee on Banking Supervision, in the first quarter of 2009 equal to 16,3% (2008 - 16,0%).
consolidation of net profit
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