TransCreditBank boosts Q1 IFRS earnings 58% to 4.1 bln rubles
MOSCOW. July 4 (Interfax) - TransCreditBank (TCB) , which is being integrated with the VTB group's retail arm VTB24 , boosted net profit to International Financial Reporting Standards (IFRS) 58% year-on-year in Q1 2013 to 4.1 billion rubles, the bank said in a statement.
Net interest income rose 15% to 6.9 billion rubles, net commission grew 8% to 1.4 billion rubles and operating income rose 2.3% to 9 billion rubles.
The net interest margin rose to 6.4% in Q1 2013, from 6% in the same period of last year. Return on equity (ROE) grew to 33.1% from 29.8% and return on assets (ROA) rose by 0.8 pp to 3.6%.
Gross assets fell 20% during Q1 to 416.7 billion rubles from 518.7 billion rubles.
The corporate loan portfolio decreased by 18% to 193.1 billion rubles from 234.9 billion rubles.
Alexei Krokhin, the head of VTB's European sub-holding and previously CEO of TCB, said in April that the bank had transferred around 80 billion of its corporate loan portfolio to VTB and the VTB Group's Bank of Moscow .
TCB should hand the bulk of its corporate business to VTB and Bank of Moscow in July. It started to transfer the leasing and factoring businesses to VTB Group members at the start of the year.
TCB said on July 4 that it had been scaling down investment in government bonds as part of its strategy. Investment in federal loan bonds (OFZ) fell 35% to 11.9 billion rubles in Q1 2013. The overall securities portfolio decreased by 10% to 51.8 billion rubles, and the inter-bank loan portfolio fell from 41 billion rubles at the start of the year to 20.4 billion rubles at end Q1.
The retail loan book continued to grow, by 2% to 122 billion rubles in Q1 2013, driven by growth in consumer loans, which accounted for 67% of the portfolio. Loans issued by ban cards grew to 4% from 3% during Q1, and loans issued to employees of Russian Railways (RZD) accounted for 85% of the retail loan book.
Loans overdue by 90 days or more came to 2.2% of the total loan portfolio, down from 2.7% at the start of the year.
The corporate NPL ratio fell to 1.5% from 2.6%, after some past-due loans were written off. The retail NPL ratio remained 3%.
Loan-loss provisions were unchanged at 15.2 billion rubles at end Q1.
The ratio of loans (minus provisions) to deposits remains 116%.
TCB's equity fell 16% to 45.8 billion rubles after dividends of 12.8 billion rubles were paid in February. The Tier 1 capital adequacy ratio was 12.2%, and total CAR as per Basel Agreement requirements was 15.1%, compared with 11.7% and 14%, respectively, at end 2012.
VTB owns 99.59579809% voting shares in TCB, VTB24 owns 0.07261845% voting shares and legal entities and employees own 0.33158346% voting shares. TCB is due to be amalgamated with VTB24 in November.
TCB was Russia's 13th largest bank by assets, according to the Interfax-100 ranking at the end of Q1 2013.
