Svyaznoy Bank posts net profit of 143 mln rubles in 2012
MOSCOW. April 22 (Interfax) - Svyaznoy Bank closed 2012 with a net profit of 142.94 million rubles to International Financial Reporting Standards, compared to a loss of 3.999 billion rubles in 2011, the Russian lender's financial statement shows.
Net interest income surged 227% to 8.172 billion rubles and commissions and fees soared 330% to 1.85 billion rubles.
The bank increased provisions by 76% to 3.297 billion rubles.
Svyaznoy Bank's assets doubled last year to 76.645 billion rubles. The loan portfolio grew by 133% to 48.54 billion rubles, as the credit card portfolio nearly tripled to 37.35 billion rubles from 13.85 billion rubles in 2011.
Credit card debt overdue by more than a month amounts to 17.9% of the of the credit card portfolio, with debt overdue by more than a year amounting to 9.8%.
Customer funds at the bank doubled to 64.99 billion rubles, as retail deposits increased by more than 120% to 55.96 billion rubles, including 40 billion rubles or 71.5% held in current and immediate-access accounts.
The bank reported that in 2012 it received financial assistance of 830 million rubles from its principal shareholder Trellas Enterprises Limited, which is controlled by Maxim Nogotkov, compared to 3.366 billion rubles in 2011. The bank received 500 million rubles of financial assistance in March 2013.
The bank had more than 2 million customers at the end of 2012. The bank said its strategy of moderate growth in 2013 is based on cross sales to existing customers.
Maxim Nogotkov, who is the main owner of the Svyaznoy Group, launched his banking project in 2010 on the basis of Promtorgbank, thereafter renamed Svyaznoy Bank. The bank offers its services at the Svyaznoy chain and specialized in the retail segment.
Svyaznoy Bank was ranked number 69 by asset value (assets doubled in the year), 33 for retail deposits (up 123%) and 29 for retail loan portfolio in the Interfax-100 review of Russia's banks at the end of 2012. Frank Research says the bank is the number six in Russia for its credit card portfolio (up 170%).
The Central Bank of Russia is aiming to restrict the rate of growth at Svyaznoy Bank. To meet Central Bank recommendations, the bank had to lower deposit rates. In the summer of 2012 the bank achieved an operating profit, but is developing 50% to 66% slower than it could be, Nogotkov told Vedomosti newspaper in June.
At the end of the first quarter of 2013, Svyaznoy Bank was Russia's 76th largest lender by assets, 37th by retail deposits and 32nd by retail loan portfolio, according to the Interfax-100 ranking.
