4 Oct 2010 14:12

MDM Bank posts over 1 bln rubles in IFRS net profit for H1

NOVOSIBIRSK. Oct 4 (Interfax) - Russia's MDM Bank posted 1.06 billion rubles in IFRS net profit for the first half of 2010, the bank said in a statement.

The bank posted 5.6 billion rubles in net losses for January-June 2009.

Total profit (profit including a reassessment of financial assets) came to 523 million rubles for the first half compared to 4.3 billion rubles in combined losses for the same period of 2009, the statement said.

The bank's pretax profit for the first half came to 1.664 billion rubles compared to 6.848 billion rubles in net losses for the same period of 2009.

MDM Bank's net interest revenue went up by 26.5% to 10.338 billion rubles in the first half of 2010.

The bank posted 8.845 billion rubles in operational revenues for the first half.

MDM Bank's assets, as of June 30, came to 366.428 billion rubles, down 9% in comparison with 402.823 billion rubles posted on December 31, 2009.

The bank's total loan portfolio, prior to reserve subtraction, went practically unchanged throughout the first half and stood at 282.333 billion rubles, compared with 282.83 billion rubles posted on December 31, 2009.

The bank's loan portfolio, following reserve subtraction, reached 239.59 billion rubles as of June 30, up 1.2% for the first half of 2010.

Total reserves for possible loan losses came to 42.739 billion rubles as of July 1, down 3% in comparison with 44.121 billion rubles posted on January 1. The share of reserves accounted for 15.13% of the total loan portfolio as of June 30, 2010, down from 15.71% on December 31, 2009.

"The share of loans overdue by over 90 days in the portfolio dropped to 17.6% from 19.2% over the second quarter while the share of all overdue loans decreased from 28.8% to 21.4% during the same period," Vadim Sorokin, MDM Bank's CFO, was quoted as saying in the statement.

MDM's total equity went up by 0.8% to 62.113 billion in January-June while the capacity sufficiency ratio stood at 18.7%.

The bank's liabilities in the first half dropped by 8.9% to 304 billion rubles. The statement said that liabilities decreased by 37 billion rubles owing to a drop in funds raised from other banks (21 billion rubles) and securities issues (by 31 billion rubles). At the same time, remaining funds in client accounts went down by 15 billion rubles.

MDM Bank was 13th largest Russian bank by assets at the end of the first half of 2010 according to the Interfax-100, compiled by the Interfax Center for Economic Analysis (CEA).