Promsvyazbank posts 5.1 bln rubles in net profit for 2011 compared to previous year's losses
MOSCOW. Jan 20 (Interfax) - Promsvyazbank posted 5.1 billion rubles in net profit according to Russian accounting standards (RAS) compared to 378 million rubles in net losses for 2010, the bank said in a press release.
The bank posted profit from an increase in net interest revenue after a substantial growth in total lending, as well as rising commission revenue as total operations with client accounts went up.
Promsvyazbank's assets went up by over 19% to over 562 billion rubles in 2011. The bank's equity went up by 17% to 63.9 billion rubles.
The bank's H1 capital sufficiency level stood at 11% on January 1, 2012 because of an increase in charter capital, as well as a subordinated loan received from a shareholder, the European Bank for Reconstruction and Development.
Promsvyazbank's total loan portfolio (excluding interbank loans) prior to subtraction of provisions came to 419 billion rubles as of January 1, 2012, up 22% from the start of 2011. The corporate loan portfolio went up by 23% while the consumer loan portfolio increased by over 20%. The total net loan portfolio (prior to provision subtraction and excluding interbank loans) came to around 386 billion rubles on January 1, 2012, up 27% for 2011.
The bank's client funds went up by 18% in 2011 while their share in the bank's obligations practically unchanged at 75% (compared to 76% in 2010). Leftover funds in corporate payment and deposit accounts increased by over 17% in 2011 while individual deposits grew by over 18%.
The bank's first vice-president, Alexander Volchenko, was quoted in the press release as saying that the Promsvyazbank is eager to develop consumer lending and loans for small and medium-sized business at a faster rate than corporate loans. This will facilitate both an increase in the bank's margins and its overall profitability.
Promsvyazbank was 11th biggest bank by assets in Russia at the end of the third quarter according to the Interfax-100 ranking, compiled by the Interfax Center for Economic Analysis.