TCB boosts 2011 IFRS net profits 16% to 8.7 bln rubles
MOSCOW. April 26 (Interfax) - TransCreditBank (TCB) increased its net profits to International Financial Reporting Standards (IFRS) by 16% to 8.7 billion rubles last year, a statement from the lending organization says.
Net interest revenue climbed 47% to 21.3 bilion rubles and net commission revenue went up 16% to 5.2 billion rubles. Net interest revenue in 2011 accounted for 80% of operating revenue, compared to 67% in 2010.
The net interest margin in 2011 was 5.2%, down from 5.3%.
Non-interest revenue was 76 million rubles, against 2.6 billion in 2010. The drop reflects a negative revaluation of securities in the trade portfolio and losses from the sale or redemption of part of the securities in the third quarter of 2011, when financial markets were very volatile. TCB said this impact was partially covered by revenue from other operations, such as revaluation of funds in foreign currency.
Operating revenue prior to formation of provisions increased 23% to 26.6 billion rubles. The ratio of operating spending to revenue dropped to 49.9% from 53.5%.
Net spending on provisions for interest assets reached 2 billion rubles, compared to 346 million rubles in 2010. Provisions were established in 2011 mostly because of the growing portfolio, the statement said.
Administrative spending went up 18% to 13.7 billion rubles.
Assets on December 31 2011 reached 505.8 billion rubles, up 29%.
Transcreditbank expanded its loan portfolio prior to deduction of provisions by 56% to 335.9 billion rubles. The corporate loan portfolio was 246.9 billion, up 70%, and the retail loan portfolio was 89 billion rubles, up 35%.
In the corporate loan portfolio, there was high growth in loans for infrastructure construction, transport, telecoms and food industry companies. Loans for railroad, aviation, maritime and road transport companies kept the greatest share of the corporate loan portfolio at 27%, TCB said.
Consumer financing saw the biggest rate of growth, almost doubling to 53.1 billion rubles. The share of consumer loans in the retail portfolio rose by 19 percentage points to 60%. Consumer loans were largely allocated to employees of Russian Railways and other corporate clients.
The share of loan to Russian Railways employees reached 85% of the overall retail portfolio, compared to 74% in 2010.
The share of non-performing loans (NPL) dropped to 2.4% from 3.6%. The share of NPL in the corporate portfolio was 2.2% (3.4% in 2010) and the share in the retail portfolio was 2.9% (4.1%).
The ratio of NPL coverage from provisions increased to 173.8% from 154.1%.
The ratio of provisions to the consolidated loan portfolio fell to 4.2% from 5.5%.
The securities trade portfolio remained virtually unchanged and amounted to 56.5 billion rubles. The share of this portfolio in assets went down to 11% from 15%. The share of OFZ increased to 63% from 54%, while that of other bond categories dipped.
The bank boosted customer deposits 70% to 341.4 billion rubles. Corporate deposits accounted for 55% of all liabilities and retail deposits for 17%. Corporate deposits climbed 21% to 259.8 billion rubles, including a 30% increase for government companies to 170.7 billion rubles. Russian Railways funds accounted for half of all corporate deposits (its share has remained virtually unchanged in the last few years). Retail deposits reached 81.7 billion rubles, up 30% in the year.
The ratio of loans to deposits improved to 98% compared to 78% at the end of 2010.
TCB replaced borrowing on the market with interbank loans. Interbank loan debt increased 290% to 62.1 billion rubles. The share of VTB loans in bank liabilities was around 10%.
The bank increased equity 28% in 2011 to 36.1 billion rubles, thanks to capitalization of profit. The capital adequacy ratio on December 31 2011 reached 15.2% (10.8% in 2010) and first-tier equity was 9.3% (7.1% in 2010).
Second-tier equity included two subordinate loans totalling 8.5 billion rubles, received from VTB last year. TCB said that in March 2012 it paid back one of the subordinate VTB loans of 5.5 billion rubles early thanks to the completion of an additional issue in February 2012.
Return On Average Equity (ROAE) fell to 27.7% from 31.9% and Return On Average Assets (ROAA) slid to 2% from 2.3%.
VTB owns 77.78% of TCB charter capital and Russian Railways owns 21.8%.
Transcreditbank was ranked number 12 by asset value in the Interfax-100 review of Russia's banks for the first quarter of 2012.