Alfa-Bank looking to maintain 2013 IFRS net profits at 2012 level
ST. PETERSBURG. Dec 6 (Interfax) - Alfa-Bank plans to keep its net profits calculated to IFRS this year at the same level as last year, the bank's senior managing director, Alexei Marey, told the press in St. Petersburg on Friday.
"We expect that net profit will remain at or exceed the 2012 level," Marey said.
Alfa-Bank made $829 million in IFRS net profits last year.
Marey said that generally the forecast for this year's financials is positive. "In general, it looks good for us. The retail credit portfolio will grow 30%, the corporate portfolio will grow as the market does, that is, around 10%. But it's possible we will grow a little more," he said.
Head of the Alfa-Bank management board Andrei Sokolov said that net profits to Russian Accounting Standards (RAS) will be higher this year than last, but provided no specific figures.
Sokolov reaffirmed the banks plans regarding the possibility of securing a subordinated loan of up to $500 million. "We are planning to raise [a loan] in the spring of next year, but we will make the definitive decision on timing, parameters, and volume in February," he said.
Marey said in October that the bank might place $400-$500 million worth of subordinated Eurobonds next spring, and that most likely it would be a traditional subordinated loan and not a hybrid instrument.
Last month, ABH Financial, the parent company of Russia's Alfa-Bank, placed 85 million Swiss francs worth of Eurobonds yielding 4%. Those were five-year bonds. The issue organizer was UBS.
The last time Alfa-Bank entered the international debt market was in April, when it placed three-year ruble-denominated Eurobonds to the tune of 10 billion rubles at 8.625% per annum. The actual issuer was Alfa Bond Issuance plc, and the bonds were placed according to the 144a/Reg S rule.
The bank placed $750 million worth seven-year subordinated Eurobonds at 7.5% p.a. last September.
Alfa-Bank is the key ABH Financial subsidiary, as it accounts for some 90% of the company's assets and obligations. The bank is also the group's main operating subdivision.
Alfa-Bank ended the third quarter in 7th place by assets on the Interfax-100 ranking of Russian bank size.
