Vozrozhdenie Bank keeping IFRS net profit forecast for this year at 1.1 bln rubles
MOSCOW. Aug 18 (Interfax)- Vozrozhdenie Bank is holding onto its IFRS net profit forecast for this year of 1.1 billion rubles because of negative trends on global markets, Andrei Shalimov, a member of the bank's executive board, told journalists on Thursday.
"We won't be changing it [2011 net profit forecast] because everybody was scared off two weeks back and fled every which way. We will see many more of these shakeups," he said.
It was earlier reported that the bank increased its IFRS net profit by 230% in the first half of 2011 to 712 million rubles. Net profit for the second quarter of this year came to 395 million rubles.
Vozrozhdenie Bank expects to post a net interest margin of 4.2% for 2011. This figure went up by 106 percentage points from the first quarter to 4.3% in the second quarter.
Shalimov said that the bank's current financial results are above forecasts. "We're doing a bit better than planned but we don't plan to skyrocket," he said.
Vozrozhdenie Bank also is keeping its forecast for loan portfolio expansion in 2011 by 15%. "We still don't want to change the base forecast. Demand for good in the first quarter but now there's a lull. We are readying a base so that the portfolio grows in the fourth quarter," he said.
When asked about changes in the mood of retail clients, Shalimov said that total operations for purchasing forecast has increased recently. However, transfers from ruble-based accounts to forex accounts have yet to be noted.
The bank expects rates for deposits and loans to start increasing in September. "There will be a turnaround, possibly, in September," Shalimov said, adding that the bank, in its decisions on rates, generally follows the market's main players, primarily, top Russian bank Sberbank .
"Banks are living on liquidity reserves. Sberbank is ready to provide cheap lending. But now the main issue is whether deposit inflow will be restored," he added.
Vozrozhdenie Bank is continuing with its conservative approach to the formation of provisions. "This is an additional safety margin for the bank since the situation on the market isn't very stable," said the deputy chairperson of the bank's managing board, Lyudmila Goncharova.
As of June 30, 2011, the bank's level of coverage for problematic debt due past one day came to 109%, 30 days past due - 136% and over 90 days - 142%. The bank plans this figure at 120% for this year.