Svyaznoy Bank plans 50% annual portfolio growth, stable profit in 2014-15
MOSCOW. May 24 (Interfax) - Svyaznoy Bank plans to achieve stable profit and about 50% annual growth in its loan portfolio in 2014-2015 on the basis of investments in infrastructural development in 2013 and improvements in work with arrears, the bank said in a presentation for its exchange bond issue.
Svyaznoy Bank demonstrated positive financial results in 2012, at 140 million rubles in profit to International Financial Reporting Standards (IFRS), compared to a substantial loss of 3.99 billion rubles in 2011. Its loan portfolio soared 133% to 48.5 billion rubles last year, and the number of issued cards doubled to over 2 million.
This year, Svyaznoy Bank plans to see somewhat of a reduction in business growth rates "due to the necessity of adapting the bank's balance sheet to the Bank of Russia's new requirements in terms of capital adequacy," and this year's financial result "will be close to neutral," the presentation said. The bank plans to beef up its portfolio by 20% to 58.4 billion rubles in 2013.
Substantial investments in infrastructural development will have an impact on Svyaznoy Bank's 2013 financials. In addition, the virtual absence of growth in the loan portfolio over the first months of this year, caused by restrictions imposed by the Central Bank but removed in May, will also influence the financials.
Customer funds soared 37% to 67.6 billion rubles in 2012, and this year they are expected to edge up by just 0.9% to 68.2 billion rubles.
The Central Bank has been trying to limit Svyaznoy Bank's growth rates since November 2011. Last August, it issued instructions to the bank to restrict receipts of retail deposits. This limitation was originally in place for six months, but this past February the regulator extended it to May 21.
Svyaznoy Bank was Russia's 76th largest bank by assets and its 32nd largest by retail loans at the end of Q1 2013, according to the Interfax-100 ranking. The bank's main beneficiary is the founder of the Svyaznoy Group Maxim Nogotkov.
