MDM Bank posts IFRS net profit of 43 mln rubles in Jan-Sept
MOSCOW. Dec 9 (Interfax) - MDM Bank earned a net profit of 43 million rubles in the first nine months of 2013, compared to a net loss of 4.8 billion rubles in the same period of 2012, the lender said in a press release.
The bank's operating profit, before provisions, surged more than 70% to 4 billion rubles. The net interest margin rose to 4.2% from 3.9% a year earlier.
Operating costs decreased by 5%, and the cost to revenue ratio dropped 11 percentage points to 67% in the nine months from 78% in the same period of 2012.
The bank's Tier I (Basel I) capital adequacy ratio was 17.7%, and the capital adequacy ratio according to Central Bank of Russia requirements was 11.9% as of September 30, 2013.
MDM Bank's loan portfolio shrank to 173.5 billion rubles as of September 30 from 181.7 billion rubles at the beginning of 2013. The bank continues to pursue a policy of reducing the concentration of credit risks in the corporate portfolio and removed a number of large loans from its portfolio in pursuit of this policy.
The main focus in regard to the retail loan portfolio in the medium term continues to be the development of more profitable consumer lending programs such as cash loans and credit cards.
The share of nonperforming loans rose to 10.1% in the third quarter of 2013 from 9.7% in the first half of the year, largely due to the delinquency of several corporate loans managed by the bank's division for working with bad debts, the lender said. These loans are in the process of being restructured. The provisions to bad debt ratio was 111% at the end of the third quarter.
The ratio of net loans to deposits stood at 90% at the end of the third quarter, and the share of client funds in current/settlement accounts rose to 20% from 18.8% of total client funds at the end of 2012.
MDM Bank was Russia's 23rd largest bank by assets at the end of the third quarter, according to the Interfax-100 ranking of the country's lenders.