MDM boosts IFRS net profit 140% to 934 mln rubles in 9M
MOSCOW. Nov 24 (Interfax) - MDM Bank posted a net profit of 934 million rubles in the first nine months of 2014, up 140% from 385 million rubles in the same period last year, the bank said in its IFRS earnings report on Monday.
"In the first nine months of 2014, the Bank delivered a marked improvement in its financial performance, despite a deteriorating macro and operating environment," MDM Bank said.
Pretax profit rose 150% year-on-year to 1.250 billion rubles (from 494 million rubles) and recurring profit before tax (excluding trading and other income) jumped 170% to 678 million rubles.
Bank assets rose 7.8% to 288.682 billion rubles as of the end of September.
The loan portfolio grew 13.5% to 177.140 billion rubles, including 139,953 billion rubles in corporate loans, up 13.2%, and 52.832 billion rubles in retail loans, up 2.5%.
Deposits rose 5.9% to 191.180 billion rubles, including 114.239 billion rubles in retail deposits, up 1.7%.
CEO Timur Avdeenko credited the strong financial and business results to the bank's conservative risk assessment strategy.
The annualized net interest margin was 4.8% in January-September 2014, up from 4.2% in 9M 2013 and 4.5% in H1 2014. Net fee & commission income increased roughly 11% year-on-year, amounting to 25% of total operating income.
The net loan/deposit ratio amounted to 93% as of the end of the third quarter, indicating low reliance on market funding.
Liquid assets comprised 28% of total assets.
"Foreign currency-denominated assets and liabilities accounted for approximately 20% of the Bank's total assets and total liabilities as at end Q3 2014. The foreign currency share of customer funding remained stable at circa 22% of total customer accounts," MDM Bank said.
The bank's NPL ratio decreased by 1.2 percentage points in Q2 and Q3 2014, to 11.5% as of the end of September. Provision coverage ratio remained at a prudent 147%, the bank said.
Tier 1 capital adequacy amounted to 12.2% as of September 30 and total regulatory capital ratio (Central Bank of Russia requirements) was 11.1%.
MDM Bank is the 24th biggest Russian bank by assets as of the end of the third quarter of 2014 according to the Interfax-100 ranking compiled by the Center for Economic Analysis.