IFRS net profits at TCB grow 11.6% in H1
MOSCOW. Sept 1 (Interfax) - TransCreditBank (TCB) earned first-half net profits to International Financial Reporting Standards (IFRS) of 3.1 billion rubles, 11.6% than in H1 2010, the bank reported in a press release.
Q2 net profits increased 19.3% year-on-year to 1.5 billion rubles.
H1 combined net interest and net commission income was up 34.6% from H1 2010.
Operating income prior to provisioning was up 22.3% for the half at 12.8 billion rubles. Income from core business activities represented 88% of that (80% in H1 2010).
The charge for impairment of interest-earning assets came to 2.2 billion rubles, up 17.3% year-on-year for the half. This was largely due to credit portfolio growth.
The bank's cost/income ratio for Q2 decreased to 45.4% from 51.9% in Q1 this year. It was 51.9% for the half as a whole.
The bank's H1 net interest margin, calculated on an average daily basis, came to 5.0% - up from 5.3% for the same half last year.
Average return on assets in annual terms was 1.5% (1.9% in H1 2010), average return on equity - 21.1% (25.9%).
TCB's total assets grew 9.2% to 426.9 billion rubles over the first half, with the most growth occurring among its credit portfolio and securities trading portfolio.
Prior to provisioning, the credit portfolio increased 37.6% to 297.0 billion rubles over the half (20.7% growth in Q2).
The bank's business loan portfolio grew 47.5% over the half (24% in Q2) to 220 billion rubles. Its retail credit portfolio expanded 15.3% over the half (11.9% in Q2) to 76.2 billion rubles, mainly thanks to an increased volume of issued consumer loans.
The NPL ratio of debt more than 90 days past-due decreased in the corporate portfolio to 2.6% from 3.4% on December 31 last year, in the retail portfolio - to 3.8% from 4.1%. For the combined portfolio, the NPL ratio shrank to 2.9% from 3.6% at end-2010. "The share of renegotiated loans (loans that had been renegotiated due to financial difficulties or potential future difficulties of the borrower) was a mere 0.3% of the total loan portfolio," TCB said.
The bank's allowance for loan impairment amounted to 14.1 billion rubles, up 14.8% over the quarter in line with portfolio growth. Provisions secured coverage of 162.6 of NPLs, up from 154.1% at the end of last year. Provisions covered 4.8% of the total credit portfolio (down from 5.5%).
VTB had consolidated 43.2% of TCB ordinary shares by the end of 2010, having acquired them from organizations associated with the non-governmental railway pension fund Blagosostoyanie. VTB now holds 74.37% of TCB shares, OJSC Russian Railways (RZD) - 25% plus one share.
TransCreditBank ended H1 2011 in 11th place by assets on the Interfax-100 ranking of Russian bank size, VTB - 2nd place.