Gazprombank Group boosts 2011 IFRS earnings 43% minus SIBUR
MOSCOW. April 10 (Interfax) - The Gazprombank or GPB Group boosted net profit to International Financial Reporting Standards (IFRS) 42.8% in 2011 to 40.8 billion rubles from 8.6 billion rubles in 2010, the bank said in a statement.
The figure does not reflect income of 66.3 billion rubles from the activity and sale of petrochemicals company SIBUR Holding, which GPB Group sold in December 2010. Adjusted for that figure, net profit would have fallen 38.4% last year.
"The influence of SIBUR is absent from the Group's reporting for 2011. In 2010, both the gain from the sale of SIBUR and from its activity were reflected," Yury Malikov, the bank's vice president and head of its department for IFRS reporting, told reporters.
Profit last year was driven by interest income and commission, which rose 70% to 68 billion rubles, GPB said in the statement. This income accounted for 71% of total income, up from 45% in 2010.
Operating costs to operating income fell to 39.4% in 2010, from 45.5% in 2010.
Operating income from non-banking business related to the group's industrial assets was 3.1 billion rubles in 2011, up from 700 million rubles in 2010. The group's industrial assets include United Heavy Machinery , Gazprom Media Holding and some others.
Return on equity was 17.1% in 2011, compared with 12.8% (from continuing operations) in 2010. Return on assets rose to 2% from 1.6%.
The net interest margin rose to 3.6% last year, from 2.5% in 2010.
Assets grew 27% to 2.478 trillion rubles.
The corporate loan portfolio before provisions rose 32.7% to 1.312 trillion rubles and the retail portfolio grew 49% to 142.7 billion rubles.
Non-performing loans fell to 1.4% of the portfolio in 2011, from 2.1% in 2010. Provisions fell to 4.0% from 4.7%.
Provision charges quadrupled in 2011 to 10.9 billion from 2.7 billion rubles in 2010, due to growth in lending and provisioning for new loans.
Restructured loans fell from 4.4% of the portfolio in 2010 to 3.5% last year.
The securities portfolio grew 37.4% to 210.1 billion rubles last year and accounted for 8.5% of assets, up from 7.8%. Profit from securities rose 6.4% to 16.6 billion rubles as the result of the sale of some securities, from 15.6 billion rubles in 2010, which did not include 23.3 billion rubles from the sale of OJSC Sibneftegaz and OJSC SIBUR Holding.
The ratio of client loans before provisions to client funds rose to 95.9% at the end of 2010, from 89.7% at the end of 2010.
Corporate loans grew 28.9% last year to 1.25 trillion rubles and retail loans - 11.8% to 266.5 billion rubles.
Equity grew 9.5% to 242.9 billion rubles as the group capitalized profit. The capital adequacy ratio fell to 14.6% from 16.7%, and the Tier 1 CAR to 9.6% from 10.6%.
Borrowing on the capital market in the form of bonds and syndicated loans grew 40.7% last year to 210.5 billion rubles. Subordinated deposits decreased by 6.9% to 133.6 billion rubles.
Gazprombank was Russia's third largest bank by assets, according to the Interfax-100 ranking at the end of 2011.
The bank said separately that non-consolidated net profit to Russian Accounting Standards (RAS) rose 50% year-on-year in Q1 2012 to 20.5 billion rubles, due again to higher interest and commission, and to a reduction in provision charges as the quality of assets improved.
Equity grew 2.5% during Q1 2012 to 278.8 billion rubles but assets fell 0.6% to 2.832 trillion rubles.
Corporate loans grew 3% to 1.29 trillion rubles and retail loans 6.8% to 116.3 billion rubles.
Corporate deposits rose 4.4% during Q1 to 1.391 trillion rubles and retail deposits fell 0.1% to 253.2 billion rubles.
